Washington Mutual has just rolled out a promotional CD rate. It is available online and in branch (if you have WaMu in your state). The minimum investment is $1,000 and early withdrawal penalty is 90 days of interest. There are 12 and 13 month terms available
This is an incredibly good rate from a decently sized bank. You can fund the CD with an ACH transfer within 7 calendar days of opening an account. If you already have an account with them like me then this should be just a matter of an internal funds transfer.
WaMu has not been exactly doing great financially over the past year and this promotion could be a sign that they are running into liquidity problems. That said, the account is FDIC insured and you will be fine as long as you are under the total FDIC coverage limit.
WaMu just sacked their CEO but it doesn’t seem to be helping the stock. It is down 18% at the moment. Here is more from WSJ:
http://online.wsj.com/article/.....07945.html
OMG! I have couple of CDs with WM and I’m thinking to early withdrawal right now…
Any suggestion which bank I should go to?
The Bank was taken over, not shut down. Its the same Wamu-Just owned higher up. Your CDs will still make money and your accounts will still make interest. If you did not get on the promotional deal, Too bad!. With national interest at 1%, 5% sounds like a great deal right now.
Keep the money there! with markets sinking, its a great time to start lending money!