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WaMu 5.00% APY 1-Year CD

Johns Wu Posted in Expired Deals by Johns Wu
August 25, 2008 12:02 PM - 67 Comments

A few weeks ago we had a huge discussion about WaMu’s secret in-branch rates.

Now, Washington Mutual has quietly rolled out a killer 5.00% APY interest rate on their 12-month and 13-month CD accounts.

Although I strongly believe that this rate hike is a sign of desperation (have you seen their stock lately?) from WaMu, this yield is so awesome that it’s not going to stop me from opening an account. Just be sure to stay within FDIC insurance limits!

Hats off to Bankaholic reader Raymond for tipping me off on this white hot rate.

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Comments (67)
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  1. Smartyiam said:
    on August 25th at 12:41 pm

    This is even better: 5.01 APY for a checking account.
    http://www.national1st.org/
    http://www.national1st.org/WebFederal.asp?Cabinet=Home&Drawer=Main&Folder=Accounts&SubFolder=Checking#erewardsplus

    The only condition is to make 15 debit card transactions every month.

  2. Concerned American said:
    on August 25th at 03:29 pm

    yeeeoww! wamu should go bankrupt any day now

  3. Peter said:
    on August 25th at 04:00 pm

    Maybe Chuck Schumer should once again express his “concern” over the collapse of a bank?

  4. Chris said:
    on August 25th at 09:57 pm

    Does anyone know - if a bank, in this case Wamu, fails and the FDIC steps in, does interest on CDs and such continue to accrue while they are sorting out the bank’s mess, or do they just insure the balance?

  5. Stephen said:
    on August 26th at 12:39 am

    if any of you above posters know anything WAMU will not “FAIL”

    they would get bought out before even being bankrupt.
    they are TOO big.

    the government/FDIC will never let it get to that point

    case in point:
    IndyMac

  6. puff pass said:
    on August 26th at 01:16 am

    http://www.charterco.com/personal/turbo.cfm

    -that one’s even better i think. 6% and u only have to do 10 debit card transactions/month (could do em all in the self checkout isle at stop and stop- one swipe per item!).

  7. Yo Mama said:
    on August 26th at 02:49 am

    Stephen - yes they could fail. The FDIC will come in and take them into receivership - just like they did with IndyMac. If you actually follow this sector you would realize that three weeks before Indy failed - they jacked up 12 months CD rates to 5% as well. In fact - if you want to get a good read on the next banks to blow up - go to bankrate.com and pull up a list of the highest yielding CD’s… That’s your top 10 right there.

  8. Index option Trader said:
    on August 26th at 06:40 am

    Why lock in a 1 year deal when you know rates will keep going up? Try to keep getting highest rates without being locked in and keep moving your cash positions just like stocks in a portfolio.

  9. Stephen said:
    on August 26th at 04:48 pm

    Yo Mama-

    Indymac & WAMU are completely different
    yes they are banks
    yes they made bad loans
    but there is one thing that sets the two apart.

    if you really understood the sector & business.

    “Retail Business”

  10. Chuck said:
    on August 26th at 06:14 pm

    Yo Moma - Does it matter? Really? since things are FDIC insured why worry? Just wondering your thoughts. I’ve been reading a lot about FDIC lately and at no point in the past 70 years has anyone that has stayed within the FDIC limits lost a penny. They guarentee your deposit money in addition to the interest earned up to the day the bank goes under.

  11. sam t. said:
    on August 27th at 08:10 pm

    SHEEBA SEKI

  12. Martin Isenburg said:
    on August 27th at 09:37 pm

    i just called indymac to close my cds and transfer the money over to wamu 5%. they offered me to match the wamu offer if i leave my money with them, pretty neat!’

  13. J. Wu said:
    on August 27th at 11:01 pm

    Wow i didn’t know you could bargain with banks.

  14. barbara said:
    on August 28th at 05:06 pm

    I tried opening 3 online cds at the beginning of August - the electronic funds transfer never went through, even after I verified the small deposits made by WAMU. I lost a whole month’s interest!! I’ve never seen a bank that makes it so difficult to deposit funds - wonder how well they work when you want to withdraw funds.

  15. Hot Mama said:
    on August 28th at 10:02 pm

    Been at WAMU forever and haven’t had any problems with them. The 5% CD rate is even good on IRAs if anyone is interested. Just because a bank is offering a high cd rate doesn’t they’re going under. People with that kind of fear are the driving force behind recessions. Your bank could go under and you could die crossing the street does that mean you never leave your house?

  16. Keevan said:
    on August 30th at 04:56 am

    5% offer is GONE for online CDs.

    Down to 4.5% now for my zip code.

  17. professor said:
    on August 30th at 06:05 am

    I hate WM for several reasons.
    Besides buying their stock at 39 last summer, they cheated me on my cds. They shorted me on my interest and I never got a response from the branch nor anyone at their (lackof) customer service phone. They are the most incompetent bank I have ever dealt with and I have no doubts they will fail. I finally sold my stock realizing they are DONE.
    I will never deal with them every after they return after fdic resolvency.
    They are the worse. Idiots who don;t know how to use a calculator, who shouldn’t be allowed to clean restrooms are running this POS.
    I ven was turned down for a $1000 line of credit (for overdraft protection) WHILE I had 525k in cds there. My credit score is in the 700s and they only insulted me when I asked why was I turned down.
    It seems that they made loans to people with no credit, but to millionaires they refuse overdraft. They are THE WORSE. I had to contact OTS to get an answer about them cheating me on my cds.
    They trimmed off days off of each month, reducing my cd rates, that most people would never had noticed. Being a math professor it was obvious. When I asked the MORON in charge he said you must be right, you’re a math professor. BUT then he said I should call customer (lack of) service, which he knew would just be a major waste of time.
    So, don’t expect the rate they claim to be offering, they lie and cheat AND they will ignore you when you ask about it. ON top of that one idiot (at a different branch) actually told me that everyone ONLY gets 100k insurance FOR ALL of your account in ALL of your banks.
    What morons, no wonder the stock is under 4, BYE BYE!!!

  18. Uncle Scrooge said:
    on August 31st at 03:43 am

    You bought WM stocks @ 39???? bwhahahahahaha

  19. Joanne said:
    on September 2nd at 11:44 pm

    I think that some of you people have way to much time in your hands… wamu is not going bankrup if anything there getting bought out.. but honestly they have a great customer service team and they will make it!!!! that is a promise.

  20. Joanne said:
    on September 2nd at 11:48 pm

    this question is for professor.. if you have 525k in cd’s why do you need a 1,000.00 credit line. makes no since and you sound stupid…

  21. J said:
    on September 3rd at 08:14 am

    He said it was for overdraft. 1k should be sufficient for that use.

  22. James said:
    on September 3rd at 03:26 pm

    Interest is going back up to 5%.

  23. lola said:
    on September 3rd at 04:54 pm

    Wamu is the best bank around!!! I think that they will make it trough this difficukt times…

  24. CM said:
    on September 3rd at 05:46 pm

    James - What do you mean that interest is going back up to 5%?

  25. Eric in Boston said:
    on September 4th at 10:42 am

    how long does it take to access insured funds at a failed bank?

  26. Chuck said:
    on September 4th at 11:11 pm

    Eric go to this website, it will answer all your questions about failed banks etc.. http://www.fdic.gov/

  27. Phan said:
    on September 5th at 06:54 am

    Wamu . They’re stink !!! really stink , indeed . I walked in their branch on
    08/28 just before the 5% for 1year CD offer end . The branch Manager seem to work hard to help me open the account , after 5 minutes dancing on his keyboard and gave me his answer : I can’t open your account due to you’re already having account with us or one of our banker has made a mistake using your driver license to open an account for someone else . I never have any account with them. They have me to call so many numbers and so many times to correct things up . Everyday i called and got the same answer : we’re working on it . Today is 09/05 I still don’t have any solid answer and I missed 5% rate

  28. James said:
    on September 5th at 04:52 pm

    5% is back !

  29. RYan said:
    on September 6th at 07:12 am

    Its back again.

  30. jo-matt said:
    on September 6th at 04:21 pm

    The 5% cd rate at WAMU is still in effect until 09/13/08. I just verified that with WAMU on the phone. Stay under FDIC limits,should be OK

  31. Jen said:
    on September 6th at 11:04 pm

    You can increase FDIC insurance by making it joint or adding qualifying beneficiary( kids, grandkids, siblings, parents, spouse)
    For example, A joint account (husband & wife) with 2 qualifying beneficiary the FDIC would insured it up to $400,000.

  32. Brian in Portland said:
    on September 7th at 05:17 pm

    I just checked - the WaMu 1 year 5.00% CD is back !! Sunday, Sept 7, 2008

  33. Phan said:
    on September 7th at 09:39 pm

    Really sad ! 1 year 5.0% is back . I’m still stuck and can’t go to have account open . They gave me an answer : We’ll try to give you an answer in 48 hours ( not 100% sure. It may take longer than what they said) . Can’t imagine why they put me through such a mess which is not my fault.

  34. J. Wu said:
    on September 8th at 11:40 am

    Yes, the deal is back. I called customer service and they hinted that this will last for another week.

  35. James said:
    on September 8th at 05:38 pm

    CM - I told you 5% was coming back.

  36. CM said:
    on September 9th at 07:32 pm

    I opened a a 5% 12 mo CD online, but it wouldn’t let me title it in a trust. I went in to a branch and they verified that online accounts can not be in a trust. I cancelled that account and opened an in-branch 13 mo CD (in the name of our living trust) at 5% APY. They said that the rates are good through this Friday. They also have an in branch Money Market at 4% APY ($25K minimum).

  37. James said:
    on September 9th at 10:24 pm

    25K @ 5% = $1250 :)

  38. Greg said:
    on September 10th at 07:18 pm

    IN FDIC INSURANCE LIMBO. When I applied for my Wamu 1-Yr Online CD there was no place to list benificiary info. In order to list or change beneficiary for ONLINE CD, Wamu will do NOTHING at a branch, online, or by phone. You must MAIL your request in writing to a P.O. Box in Northridge, CA — But there’s more — They will then mail the paperwork to you to fill out — But there’s more — You must now have that paperwork notarized before you mail it back to Wamu… I’m at step #1, so I don’t know what other hoops I’ll have to jump thru. During all of this, I PRESENTLY HAVE NO BENEFICIARIES listed, ergo I HAVE NO FDIC INSURANCE COVERAGE until the paper chase ends. I called the FDIC:They said file a complaint against Wamu at the Office of Thrift Distribution (800-842-6929); I also complained online to Wamu Customer Service; their reply was that I could handle beneficiaries at my local Wamu. I went to my local branch and was told they can do nothing there for CD’s obtained ONLINE; after more stonewalling they gave me the “EXECUTIVE RESPONSE TEAM” phone number (800-225-5497); the “rep” eluded to it being a problem, but the response was still the same. Thanks for your money, now shut-up.

  39. Greg said:
    on September 10th at 07:54 pm

    Some folks hate Wamu, some love it. All I can say is if you’re happy with Wamu, just hope the honeymoon doesn’t end. I’ve had a Wamu checking account for MANY years; I had no big problems… until I opened the online CD - - - - ENOUGH OF THAT — Now I WANT TO SHARE the CD rates I found (within the last week) and took advantage of (In all CD’s I listed 2 beneficiaries to increase to 200K my FDIC coverage - confirmed with a call to FDIC and by using the FDIC EDIE calculator — Yes, I am an IndyMac loser) - - IndyMac Federal Bank (I’m talking a Long Beach, CA branch) matched the Wamu 5%apy/1 Yr CD — They will also match other “best” rates if you tell them what you found. This was great for me because I wanted to ladder my CD’s. I also got a 5 Mo./4.25% apy at IndyMac. This was matched by Pacific Premier Bank (So Calif) — 5 Mo OR 7 Mo at 4.25% (even with a few 1000 bucks) … BUT you must apply in person. I was also able to ladder some money for 5 Mo. at 4.1% apy at Home Savings of America (Seal Beach Blvd branch) after talking to a manager, normally 4%). REMEMBER THIS: Don’t be afraid to ASK for a higher rate! I used to take what I could get, because I didn’t want to embarass myself! Not smart! HOPE THIS INFO HELPS SOMEONE OUT THERE. Don’t let your money sit. Put it to work.

  40. CM said:
    on September 10th at 09:56 pm

    Greg - I opened an online CD at WAMU and went into the branch to change it into a trust. They said that they were able to add POD beneficiaries to an online CD, but not change it into a trust. The manager made it sound like they could add the POD beneficiaries right there at the branch.

  41. Greg said:
    on September 11th at 09:54 pm

    Thanks, CM for taking the time. I mailed my beneficiary paperwork yesterday. I had also complained to Wamu Customer Svc about bad info re: changing benef at a branch; they didn’t admit their error, but they did remove “can handle at a branch” from their instructions. I come away from my recent interactions with Wamu distrusting what the tell me, and it’s obvious they are out of touch with how to treat their customers. The Wamu reps I spoke to were unfailingly cold and locked-in to a “take it or leave it” attitude. It’s interesting that In contrast, I went into a local Wachovia branch yesterday (Seal Beach Bl/Orange Co., CA branch) to open a 3.75% money market acct. — It’s great for me as it’s only minimum 10k, and I can move money 6 times per statement period, including writing 3 checks, along with other ‘bennies’. Rate is good for 3 mo., then goes to the “going rate”. The biggest, best thing about Wachovia is that I have never been treated better at a bank! Andrew Castillo, Wachovia financial specialist, explained every part of my new account, filed my beneficiary info in a flash, and gave me every copy I would usually have to ask for. After we finished the money market I asked him about moving some matured cash from another source, where I was concerned about taxes. Boom! He explained some ins and outs, THEN recommended that I “shop around” and then come back to Wachovia if I wanted to talk to their investment guy. That’s good sell, and good business. It’s COMPLETELY OPPOSITE to how EVERYONE at Wamu treated me.

  42. jim said:
    on September 12th at 02:46 pm

    Sheeple, Wamu is going Tits Up. Buy Silver instead of phony US dollars.

    Digits on a computer aren’t money. Silver is real money.

  43. Charlie said:
    on September 13th at 05:41 am

    Money is made out of paper. Buy some Euros or something.

  44. Tinda said:
    on September 15th at 12:47 am

    Once again 5% APY has expired. Now it is down to 4% for 12 months.

  45. James said:
    on September 15th at 03:05 pm

    Don’t worry. It will always come back in a week or two.

  46. Jimmy Vador said:
    on September 15th at 03:32 pm

    i enjoy cookie my car has 3 wheels i r cool

  47. Cheryl B said:
    on September 17th at 06:45 pm

    I got one of these 5% CD’s last week. With th market problems at the beginning of the week, the CD rate has dropped. There best deal is now 4.25% on an 8 month.

    Guess if you procrastinate you will lose out on these opportunities.

  48. joyce said:
    on September 17th at 10:53 pm

    I just walked into my local WAMU and was told I could still get 5% on the 13 mo CD. I’m getting a $100,000 CD so I don’t know if that was the reason for extending the deadline.

  49. James said:
    on September 18th at 05:14 pm

    Washington Mutual is for sale !

  50. John said:
    on September 19th at 03:38 pm

    Joyce, Where do you live? Which Branch?

  51. John said:
    on September 19th at 03:39 pm

    A
    Anybody still getting a 5% CD for 13 months in southern CA….?

  52. Greg said:
    on September 22nd at 02:50 am

    (Partly in response to Joyce on 9/17) FDIC may insure you to 100K, but remember to adjust what you actually put in, considering the interest that will accrue. By adding siblings (etc) as beneficiaries (POD, ITF) you can increase your coverage. Just be sure to get those benef’s listed as soon as you open your account. The FDIC EDIE calculator is great for planning this or confirming what amount you are covered to. Stuff hard learned from being burned at IndyMac.

  53. James said:
    on September 23rd at 04:39 am

    It’s back !

  54. chris said:
    on September 26th at 01:59 am

    bought.

  55. professor said:
    on September 26th at 06:56 am

    make sure you have your PODs on your account
    WM died today

  56. Saving Fool said:
    on September 27th at 09:22 pm

    What are POD’s?

  57. yin said:
    on September 28th at 04:30 am

    POD = payable on death. if you die, your money goes to your kids

  58. Allan said:
    on September 29th at 03:38 pm

    to the math professor - how can one be so educated (supposedly) yet unable to put simple sentences together using everyday grammer….

    500k in cd’s and you need overdraft protection? what kind of math professor are you if you cant keep a checkbook…

  59. Gail said:
    on September 29th at 04:43 pm

    If you have a Will designating the person or persons who should inherit your money upon death, do you still need to have a benificiary or POD on your C.D.? I am asking about accounts that do not go beyond the FDIC insured limit of $100,000.

  60. professor said:
    on September 29th at 10:26 pm

    The fdic REMOVED the need for qualified Benies last friday. YOU can put anyone down now! I also thought of this 1 year at 5, but I have been doing 5 years at 5.10-5.35 instead. We are in for a nasty few years.
    I also did a 10 year at 6 and another at 7.5.
    I hope my 2m won’t disappear.

  61. professor said:
    on September 29th at 10:31 pm

    I wanted the $100 in overdraft just for that lame best free checking account. I spend 6 weeks in Fla over christmas and my electric bill was being deducted directly from my checking account. So, I just wanted it in case the bill wasn’t forwarded to Boca while I was away. AND I’ve never had to use overdraft, but they offerred it to me at the branch so I went for it.
    And yet WM turned me down with 525k in cds.

  62. James said:
    on October 7th at 04:11 pm

    now it’s 3% CD

  63. jimmy said:
    on October 8th at 12:34 am

    5% rate for 12 months gone as of the today as James posted. If u signed up near the end be careful, rate is only good if account is funded in 7 calendar days (small print) otherwise u get the new 3% rate.

  64. Michael Jackson said:
    on October 9th at 01:43 pm

    I tried opening a online cd and have a lot of problems, made calls to customer service and was given misleading information, which is unacceptable to me.
    I never did fund the cd and I’m glad because I’ll never do business with them again.
    Too many other honest places out there.

  65. Ted Kazinski said:
    on October 9th at 07:12 pm

    Did anyone else receive this retard reply after having problems with their customer service:

    Thank you for letting me know about this issue. I regret any
    inconvenience it may have caused.

    Unfortunately, more information is required to research your inquiry.

    We’re sorry for the misunderstanding.

    Have a great day!

    Sincerely,

    Myrna Fitch
    WaMu Customer Service

  66. Dilip said:
    on October 17th at 05:35 pm

    WaMu Online CD information said 5% for 13 months. I opened up two accounts, but none of them went through and got processed. It is frustrating to see banks advertise and no one really followed up. I do not still have any money getting this percent offer. Bank needs to follow up on these complaints.

  67. June said:
    on December 4th at 05:06 pm

    I opened a WaMu Online CD on 9/4/2008 and confirmed their micro-deposit on 9/6/2008. But they had no response after that.
    Because this was my first time opened a CD account, I didn’t know it is abnormal until I receive an e-statement with $0.00 balance.
    I asked them three times about this problem. Finally, they funded my account just on the day the rate down to 3%(Oct. 7th). And I get the rate 3%.
    My second CD account is HSBC Online CD. I opened it on 10/22/2008. This time I knew I need to follow up. I asked them to transfer initial deposit for three times before my account was funded on 11/11. They debited two fund from my resource account.

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