Best CD and Money Market Rates

[quote author="optimusprime" date=1220392807]Hmmmm....is it worth it to risk putting your money at Wamu for an extra 30-40 bps?



Wamu is one of the higher risk banks around.</blockquote>


Where's the risk if you stay below FDIC insurance limits? Do you really think the FDIC would be allowed to fail?
 
[quote author="PANDA" date=1220393895]Optimus,



In your opinion, which do you think are the 5 safest banks currently?



Panda.</blockquote>


Wells

B of A

Chase Bank (JP Morgan)

HSBC

ING



Those are the safest but also have the lower yields except for ING & HSBC which you can get around 3.75%+ on their 6 month CDs



If I were you, I would do research on mom and pop banks...see when they opened and ask how much of their business is involved in Mortgage lending.



I found one mom and pop with a 5, 6, 7 month term for around 3.88% ...fits my outlook since I do think rates will be raised in about 6-12 months from now.
 
[quote author="ipoplaya" date=1220398013][quote author="optimusprime" date=1220392807]Hmmmm....is it worth it to risk putting your money at Wamu for an extra 30-40 bps?



Wamu is one of the higher risk banks around.</blockquote>


Where's the risk if you stay below FDIC insurance limits? Do you really think the FDIC would be allowed to fail?</blockquote>


You're fine under $100k...my trade off is..do you want to go thru the paperwork to get your funds back?



If you have had to file for FDIC to get your money back...please share with us your experience.



For me, I rather not go thru the trouble.
 
[quote author="optimusprime" date=1220398408][quote author="ipoplaya" date=1220398013][quote author="optimusprime" date=1220392807]Hmmmm....is it worth it to risk putting your money at Wamu for an extra 30-40 bps?



Wamu is one of the higher risk banks around.</blockquote>


Where's the risk if you stay below FDIC insurance limits? Do you really think the FDIC would be allowed to fail?</blockquote>


You're fine under $100k...my trade off is..do you want to go thru the paperwork to get your funds back?



If you have had to file for FDIC to get your money back...please share with us your experience.



For me, I rather not go thru the trouble.</blockquote>
I've had my money at about 4 different failed banks in my lifetime.

There wasn't any paperwork involved on my part.

My money stayed at the same bank.

The only difference to the consumer is the bank name.

For example, Indymac Bank's name changed to Indymac Federal Bank.



Just keep your money under the <a href="http://www.fdic.gov/">FDIC</a> limit.
 
[quote author="ipoplaya" date=1220398013][quote author="optimusprime" date=1220392807]Hmmmm....is it worth it to risk putting your money at Wamu for an extra 30-40 bps?



Wamu is one of the higher risk banks around.</blockquote>


Where's the risk if you stay below FDIC insurance limits? Do you really think the FDIC would be allowed to fail?</blockquote>


It may be important to consider what FDIC failure is. Does that mean the FDIC runs out of money it gets from bank fees? If so, then IMO it is highly likely that it will fail. If failure means that the FDIC will not make good on insured deposits whether the FDIC has the money or not, then IMO it is highly UNlikely. The FDIC will "borrow" from the Federal Reserve when the FDIC runs out of money, and all insured depositors will be paid. The fractional reserve banking system would collapse in less than 24 hours if the FDIC did not make good on insured deposits, and the Fed knows this and the Treasury Dept. knows this. There will be no obvious effect on depositors when the FDIC runs out of money. My guess is that the failure of WaMu and DSL will be enough to deplete all of the FDIC's current reserves.
 
[quote author="Astute Observer" date=1220402028][quote author="CalGal" date=1220398780]

I've had my money at about 4 different failed banks in my lifetime.

There wasn't any paperwork involved on my part.

My money stayed at the same bank.

The only difference to the consumer is the bank name.

For example, Indymac Bank's name changed to Indymac Federal Bank.



Just keep your money under the <a href="http://www.fdic.gov/">FDIC</a> limit.</blockquote>


I was <span style="color: red;"><strong>over the FDIC-limit </strong></span>when IndyMac failed, and I just renewed the CD this past weekend. No hassle.



I did withdraw money out before the renewal so that I will not have to worry about the limit anymore.</blockquote>
Very risky in this economy. :gulp:



Glad it worked out OK for you.
 
[quote author="optimusprime" date=1220398319]



Wells

B of A

Chase Bank (JP Morgan)

HSBC

ING



Those are the safest but also have the lower yields except for ING & HSBC which you can get around 3.75%+ on their 6 month CDs



If I were you, I would do research on mom and pop banks...see when they opened and ask how much of their business is involved in Mortgage lending.



I found one mom and pop with a 5, 6, 7 month term for around 3.88% ...fits my outlook since I do think rates will be raised in about 6-12 months from now.</blockquote>


I recently closed my account with HSBC.

It was a branch opened account not HSBC Direct.

If I?m not mistaken, they received a D+ on the bank report card that Graph posted on another thread.

Switched to Bank of the West located in the Trader Joes Plaza on Culver.
 
I recommend everyone bookmarkinghttp://bankdeals.blogspot.com- the entire blog is dedicated to CD and MM rates.



Also, I highly recommend the WAMU liquid CD. Its giving 4.25% and you can withdraw money any time. I figure its a good place to park some downpayment funds. And like others have already said, stay under the FDIC limit and you are fine. By the way, increasing your FDIC coverage is really easy with PODs and beneficiaries.
 
RKP,



Do you recomend these CDs as well just like the WAMU liquid CD if i stay under the FDIC limit?



Downey Savings 6-month CD

Corus Bank 6-month CD



Thanks RKP, I checked out the blog and found this offer.

4.80% 7-Month CD at a Chicago Bank (Pan American)
 
[quote author="PANDA" date=1220467474]RKP,



Do you recomend these CDs as well just like the WAMU liquid CD if i stay under the FDIC limit?



Downey Savings 6-month CD

Corus Bank 6-month CD



Thanks RKP, I checked out the blog and found this offer.

4.80% 7-Month CD at a Chicago Bank (Pan American)</blockquote>


Yes - both are FDIC banks so you are fine. Between my parents, in-laws, and myself, we have gone through 4 banks closing and FDIC taking over. In all cases, it was super easy to get our money. I know there is some rumblings about the FDIC running out of funds but think about the implications of that. Thats basically saying America is failing and there will be much worse things if that happens. The feds will keep printing money and giving to FDIC to cover the failing banks.
 
[quote author="PANDA" date=1220467474]RKP,



Do you recomend these CDs as well just like the WAMU liquid CD if i stay under the FDIC limit?



Downey Savings 6-month CD

Corus Bank 6-month CD



Thanks RKP, I checked out the blog and found this offer.

4.80% 7-Month CD at a Chicago Bank (Pan American)</blockquote>


Downey and Corus will both probably fail. Corus has been hurting for a while. They were big in construction loans and obviously the collateral value has been declining. I gave you the plan Panda. Use Everbank's teaser rate for 3-6 months and wait for CD rate increases. Why lock up on 6-months at 4.25% anywhere if you can get 4.75% on an Everbank money market? I bet we'll be seeing 4.5-4.75% on 6-month CDs toward the end of the year...
 
Downey, under compulsion from its regulator, dropped CD rates considerably. My 6-month CD there is .25 better than their current 9-month offering now...
 
What are the CD rates going to do with this F/F takeover?



(Sorry for being Panda-ish with all my questions today)



:gulp:



WaMu is advertising a 4.89% 1 yr CD as of this morning ....
 
[quote author="Trooper" date=1220915482]WaMu is advertising a 4.89% 1 yr CD as of this morning ....</blockquote>


Maybe because they got rid of <a href="http://online.wsj.com/article/SB122087504128309835.html?mod=googlenews_wsj">this guy</a> and now have more money to give out as interest? ;)



Also, the WSJ article says this: "Washington Mutual also said it entered a memorandum of understanding with the Office of Thrift Supervision, meaning it is now effectively on probation. The bank said the regulatory warning concerns aspects of its operations related to risk management and compliance."



I wonder how much longer it will be before they are taken over by the FDIC?
 
<a href="http://bankdeals.blogspot.com/2008/09/500-5-month-cd-at-first-new-england-fcu.html#comments">5% 5-month CD deal</a>, just gotta join a New England CU...
 
[quote author="Anon." date=1220916094][quote author="Trooper" date=1220915482]WaMu is advertising a 4.89% 1 yr CD as of this morning ....</blockquote>


Maybe because they got rid of <a href="http://online.wsj.com/article/SB122087504128309835.html?mod=googlenews_wsj">this guy</a> and now have more money to give out as interest? ;)



Also, the WSJ article says this: "Washington Mutual also said it entered a memorandum of understanding with the Office of Thrift Supervision, meaning it is now effectively on probation. The bank said the regulatory warning concerns aspects of its operations related to risk management and compliance."



I wonder how much longer it will be before they are taken over by the FDIC?</blockquote>


About a week
 
ING is currently at 4.00% for a 12 mo CD, which sucks because last Oct they were offering a 4.5% CD prior to the rampant inflation we've been experiencing this summer.



A few weeks ago my WaMu branch was advertising a 5.00% 12 mo CD, but it was an in-branch CD, meaning it differs from their online CDs in that you have to open the CD at the branch in person.
 
I just did an account and CD with First New England CU. It was easy sign up and pleasant customer service experience. Highly recommend. They participate in CU shared branching so you can make transactions with them through many local CUs. The 5% 5-month CD is a great deal IMO. I popped $50K in I had sitting on Wamu's online savings account that was earning at 3.75%.
 
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