New Very High CD Rates at Wachovia - 4% 7-Month, 4.25% 12-Month, 5.25% 5-Year read and submit comments for this post

Wachovia has just started offering some very high CD rates on all terms. These Featured CDs include a 4.00% APY 7-month CD, a 4.25% APY 12-month CD and a 5.25% APY 60-month CD. The minimum deposit is $5,000. Only the 7-month Featured CD is listed at Wachovia's savings page. A reader noted the other Featured CDs, and I just called and confirmed. Here's the full list of rates and terms:

Wachovia Featured CD Rates as of 6/20/08:

Term         APY
7-month      4.00%
12-month     4.25%
18-month     4.40%
24-month     4.50%
36-month     5.00%
48-month     5.15%
60-month     5.25%

When you call, the CSRs always ask for your zip code to verify the Featured CD rates. I've verified the above for zip codes in Florida, Texas and California. The CSR said that these are likely available in all states. I asked about how long he expected these to last. As usual the CSR said these rates could change at any time, but he expected them to last through June and possibly into July.

Update: I asked another CSR regarding the checking account requirement, and I was told that these Featured CDs do require a Wachovia checking account. The first CSR I spoke with this morning said it wasn't required. I'm not sure if it depends on your state or if one of the CSRs was wrong. So your miles may vary. I used a New York zip code for this latest call. I also confirmed the above rates for this New York zip code. Wachovia's Free Checking requires only a $100 minimum initial deposit, and there are no minimum balance requirements. However, there is a hard credit pull. See this post for more checking account details.

These CDs are also available in an IRA. According to the CSR, you can open these online or by phone. The CSR didn't think you could fund these via an ACH transfer from an account of another bank. However, at the start of the online application, it states:

Submit your completed application and deposit check by mail or at a Wachovia Financial Center. You can also fund your CD by transferring funds from an existing Wachovia account or requesting a transfer from another financial institution

Update 7/8/08: A reader has reported that if you don't already have a checking account, you won't be able to open the CD online. A branch visit is your best bet.

Wachovia CDs with terms of one year or longer have an early withdrawal penalty of 180 days of interest. Terms over 90 days and under one year have a penalty of 90 days interest.

Other Wachovia Bank Deals

For those who signed up before June in the Way2Save program will be earning 16% interest on their Way2Save accounts through August 2008. Unfortunately, deposits are limited so it's hard to get much money into this account. Even without this 16%, the Way2Save program is still not a bad deal for small balances for this first year. See my previous Way2Save post for more details.

I haven't seen any new online Wachovia checking account bonuses lately. They've often had online checking account bonuses for $50. Let me know if you see a new one. They do often have $75 checking account bonuses for new branches. The last new-branch checking account bonus that I reported was last month in Houston. For other past Wachovia promotions, please see my Wachovia deals page.

Wachovia still does have a $25 refer-a-friend bonus for opening a checking account.

Recent News on Wachovia

As this recent article on Wachovia indicates, the bank is having problems in this mortgage mess. According to the news article, Wachovia is unlikely to raise more capital in the near-term. I wonder if these new high CD rates are related to this issue. There's another article at CNBC which speculates that JPMorgan Chase may be interested in a Wachovia bid. I wouldn't worry much about Wachovia's future since it is the fourth largest bank in the US by assets. Wachovia's financials can be reviewed at their FDIC page. But as I recommend for any bank, it's best to stay below the FDIC insurance limits.

Thanks to the readers who mentioned these new CD rates in the comments.

Update 6/22/08: I have a new post on this deal.