Is Wamu's online savings account a deal to be trusted?

Question

Is Wamu's online savings account (3.75%) a deal to be trusted? (i realize a checking account w/ $1 will be needed)?

Any fees or minimums (above $1)?

http://www.wamu.com/personal/default.asp

Answer 1

Look at their stock price. It has fallen to under $4;00 dollars. Look for a more secure company like Bank of America or Wells Fargo. I would not want to put a large sum in this sinking ship.

Answer 2

You don't have much to worry about.  WAMU makes its money on NSF fees, which is why they require the checking account.  What you need to be careful about is bouncing checks.  They will waive the fee on the first one, but will be unbudging on any others.  In this way, they attract customers who are more likely to have NSFs.

Stock price has nothing to do with the security of your money on deposit.    Investors need to be worried about stock price.  Depositors do not need to be worried.  As long as you have no more than $100,000 on deposit in a single institution, you needn't be concerned.  Even if the institution were to fail, federal deposit insurance will protect you.

One thing to keep in mind is that the terms of this offer can be changed at any time.  Right now, the 3.75 percent rate is available for balances in two different tiers, so that it applies to even low balances.  In the future, WAMU could change the terms so that your interest rate could be much lower.  Of course, if that were to happen, you could always move your money to another institution.  But, WAMU is figuring you won't bother.

I recommend that you go ahead and take advantage of it.  Keep on top of any changes in terms, and be willing to move your money in the future if necessary.

  

Answer 3

Just because your money may be protected by the government up to $100000; how long will it takes to get your money back when this institution fails. Too much headache for me to deal with.

Answer 4

Stay away from Wamu!

Answer 5

The two above answers are both right.

But how about this?

Instead of waiting a year to get 4 cents out of a dollar.

Why not buy some stock of them while it's dirt cheap?

Here's my advice:

1. If the recent bank failures taught you anything, it's to NOT trust banks. 4% a year is really too little to matter, you want to save money? Just save money, but cutting spending and shopping smart, you'll easily save yourself 5-10%

2. All major banks are the same, they are legally bound to be trustable, and are FDIC insured, however, any panic will be psychologically too much for some, so why bother the worry?

3. If there's ANY FEES, DON'T DO IT. Why should they charge you even a penny if it already takes these slow pokes a year to come up with 4 cents on your dollar?