High CD Rates from Major Banks - Bank of America, WaMu, Wachovia

Rate information contained on this page may have changed. Please find latest cd rates.

You know the competition for deposits is heating up when Bank of America comes out with a competitive CD rate.

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.

Ken Tumin
Ken Tumin: Ken is the author of the BankDeals blog and has provided this article to BestCashCow.

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Today's Highest Online CD Rates

Bank Product Term Interest Rate (APY)
Navy Federal Credit Union 1-Year 0.85% APY with $100,000 minimum
Primary Bank 1-Year 0.80% APY with $1,000 minimum
Gateway First Bank 1-Year 0.75% APY with $25,000 minimum
Primary Bank 3-Year 1.00% APY with $1,000 minimum
USAA Federal Savings Bank 3-Year 0.91% APY with $175,000 minimum
Connexus 3-Year 0.90% APY with $5,000 minimum
Primary Bank 5-Year 1.30% APY with $1,000 minimum
Navy Federal Credit Union 5-Year 1.25% APY with $100,000 minimum
USAA Federal Savings Bank 5-Year 1.11% APY with $175,000 minimum

See More Online CD Rates →

Comments

  • Drew

    July 24, 2008

    These are not "HIGH" rates. Historically, these rates are very low.

    However, they are near the top of what you can get today.

  • ktexas

    July 27, 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.

  • ktexas

    July 31, 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.

  • ktexas

    August 07, 2008

    WaMu just increased its 12-month Online CD to 4.50% APY!

  • me

    August 08, 2008

    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..

  • ktexas

    August 08, 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

  • Sam Cass

    August 09, 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

  • Anonymous

    September 06, 2008

    They just wrapped up an offering 13mo CD for 5% APY. or 4.25% for 8 mo. CD

  • Bailout

    January 06, 2009

    LOL, the high rates are gone! Thanks to consolidation there is no more competition. The gov wants you to spend not save.

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