WaMu Online Savings Account Now 3.75% APY
Jul 30, 2008 
Sun
Washington Mutual now pays 3.75% APY for their online savings account. Banks are competing for our money.
Looks like the competition is heating up.
I just got an email from Washington Mutual with the latest change to the interest rate of WaMu online savings account. The new rate, effective immediately, is 3.75% APY, up 0.45% from the previous rate of 3.30% APY, becoming the sixth bank to increase its rate in the past three months (E-Trade, WT Direct, FNBO Direct, HSBC Direct, EverBank have bumped up their rates early).
I myself don’t use WaMu (don’t I have enough bank accounts already?), but I know a few people do use the bank. With this latest rate change, I have to follow the same thought when I heard EverBank’s 4.75% APY promotion: What’s the reason behind such a big increase in rate, especially after the bank, which has heavy exposure in the sub-prime market, reported a lose of $3.33 billion in second quarter last week (Reuters)? Does it desperately need cash? Even though any deposit under the $100,000 FDIC insurance limit is safe, associating with a troubled bank doesn’t really make me feel comfortable.
Anyway, here are some additional information about WaMu online savings account:
- $1 to open an account;
- A minimum balance of $300 is required to avoid $4.00 monthly service charge;
- Service charge waived if savings account is opened together with a free checking account;
- $2 for each non-WaMu ATM withdraw.
Update: This offer has expired. Check out the latest online savings and checking account interest rates to find the best rate from major online banks.
I have a hard time jumping the ship when a bank that hasn’t necessarily had the highest APY jumps up to the top for a bit to attract new money. Switching arounds banks on a regular basis is too much work for the average joe. It seems to be better to just find a bank that has had a history of good interest rates and offers quality customer service.