You know the competition for deposits is heating up when Bank of America comes out with a competitive CD rate.
Submitted: Jul 21, 2008
Views: 25798
Comments: 8
Likes: 4
It started about a month ago with Wachovia when it started offering very competitive Featured CDs. These were suppose to end last week, but they've been extended. Last week Bank of America came out with a very high yield on its 7-month High Yield Online CDs. WaMu is the latest one to offer high CD rates, and it currently has the best deal for a CD term under one year. Below is a summary of these special CDs as of 7/21/08:
When the Fed was cutting rates like crazy earlier this year, I thought we wouldn't see 4% CDs again for some time. But perhaps with increased expectations of higher inflation and future rate hikes along with the banks' need to raise capital (see this BestCashCow article), we're seeing these CD deals. If this continues, it won't be long before we'll see the return of the 5% short-term CD.
Sponsor Updates and Offers
Related Articles:
Email to someone |
Print Content |
Add to reading list
Comments Received:
Drew
(Unregistered)
These are not "HIGH" rates. Historically, these rates are very low.
However, they are near the top of what you can get today.
Posted: Jul 23, 2008
Yes, competitive would be a better term to use than high. These rates would be considered low last year when you could get a six percent short-term CD.
Posted: Jul 26, 2008
The competitive CD rate didn't last long at BofA. The website is now showing 3.30% for this 7-mo CD for Texas. They were recently advertising a 4% APY 7-month CDs at their branches in many states so this may still be available. Also, Countrywide Bank is still offering a 4.10% APY 7-month CD as of this morning.
Posted: Jul 30, 2008
WaMu just increased its 12-month Online CD to 4.50% APY!
Posted: Aug 6, 2008
me
(Unregistered)
Hi there
I just saw that WaMu did increase its cd to 4.50 percent.Are they a good bank..I want to lockup 200,000 and would love 5 percent..Is this bank in trouble..I did speak to FDIC and depending on how you name the accounts you can have over 100,000 in the bank..
Posted: Aug 7, 2008
WaMu has been hurt by its subprime business. To play safe, I would keep under the FDIC limits. There are ways to insure over $100K. WaMu has some details about this at the following link:
http://www.wamu.com/customer_service/questions_answers/faq/personal/personal_savings/certificate_of_deposit/SC2T3Q15.htm
Posted: Aug 7, 2008
You can have over $100,000 K if you use a revocable trust. You can also have a account under the name of a spouse or child.
More on revocable trusts:
http://www.fdic.gov/deposit/deposits/insured/ownership5.html
Posted: Aug 8, 2008
Bailout
(Unregistered)
LOL, the high rates are gone! Thanks to consolidation there is no more competition. The gov wants you to spend not save.
Posted: Jan 6, 2009
© Copyright 2009 ktexas All rights reserved. ktexas has granted BestCashCow.com, LLC non-exclusive rights to display this work on Bestcashcow.com.
