Comments on: WaMu Drops Interest Rate, Alternatives Abound

By: Joe

Joe — Tue, 14 Oct 2008 14:40:35 +0000

I’ll be moving a large portion to the Capital One Costco account. I liked having savings easily moved to my WAMU checking, but I also have a Chase credit card. I don’t want to give them the opportunity to offset if they screw up. I’ll keep some in there, but the bulk gets moved now. I also have a CD that will get moved as soon as it matures.

I also notice they gave NO NOTICE of the rate decrease.

I’ve had WAMU checking a long time and like them, but I expect worse service in the near future thanks to Chase.

By: Bill

Bill — Thu, 09 Oct 2008 16:14:50 +0000

I agree with Alex. Chasing rates can be a waste of time. Most of our customers enjoy the convenience of online banking with the security of bricks & mortar locations. No, 2.75% APY isn’t the best rate, but we are also rated as “Sound” (Four Stars) by BankRate.com.

By: Debbie M

Debbie M — Thu, 09 Oct 2008 15:21:39 +0000

It looks like ING just dropped to 2.75%

By: Lissa

Lissa — Thu, 09 Oct 2008 13:58:50 +0000

Ugh. While 3% isn’t horrible, it’s still a big drop (though expected). Since our main checking account is with WaMu anyway, it’s easier for us to keep the online savings there. We don’t have enough for 1% to really make a difference at this point, but if our savings were significant we’d likely look elsewhere.

By: nickel

nickel — Thu, 09 Oct 2008 11:31:54 +0000

Marian: Yes, that’s true of any savings account. For CDs, rates are guaranteed. For savings accounts, they’re not. However, FNBO Direct has consistently been at the top of the heap. Honestly, I expect all banks to cut rates shortly, as the Fed dropped rates 0.5% yesterday, but I fully expect FNBO to stay at (or very near) the top.

Keep in mind that WaMu’s rate drop happened before the Fed made their move, so they’ll likely decrease even further in the coming days.

By: Marian

Marian — Thu, 09 Oct 2008 05:45:07 +0000

“At our discretion, we may change the interest rate on your account at any time.” This quote was taken from the disclosures re online savings on FNBO Direct’s website. In addition, interest is credited on a monthly basis.
Don’t forget to check credit unions for their CD rates.

By: nickel

nickel — Wed, 08 Oct 2008 21:18:22 +0000

I haven’t heard anything about rate cuts for existing CDs, though this is (I think) possible given the takeover. As far as I know, they’ve only reduced rates for their online savings accounts and for new CDs.

By: Chris

Chris — Wed, 08 Oct 2008 21:12:25 +0000

Does this mean those who had a 5% 12-mo CD that hasn’t matured yet will get their rate dropped to 3% on their existing CD as well, or is this only for new CD starting today?

By: FFB

FFB — Wed, 08 Oct 2008 18:41:04 +0000

The Fed drop rates .5 point. You may want to lock in CD’s before banks follow suit on their CD’s and savings.

By: Alex

Alex — Wed, 08 Oct 2008 17:31:42 +0000

Another reason to NOT chase rates.

There is NO free lunch people.

By: tom

tom — Wed, 08 Oct 2008 16:17:39 +0000

They also dropped their 5% 12-mo CD to 3%.

I will also be closing my account. Chase is a cheap bank, and have never paid top interest rates.