World Savings Bank Liquid Internet 5.01% 5 Month CD's?


S

sheellah

They are offering a great rate of 5.01% on a liquid Internet CD for
only 5 months, and you can take your money out at any time as long as
you keep $5,000 in there. I'm not familiar with that bank. Is it safe
to send them a good sized check? Any way to protect myself from fraud.
I checked out the bank and it has a 4 star rating. This just seems a
little too good to be true. Anything I should watch out for? Would
appreciate any comments on this. Anything better? Thanks!
 
M

Mark Freeland

They are offering a great rate of 5.01% on a liquid Internet CD for
only 5 months, and you can take your money out at any time as long as
you keep $5,000 in there. I'm not familiar with that bank. Is it safe
to send them a good sized check? Any way to protect myself from fraud.
I checked out the bank and it has a 4 star rating. This just seems a
little too good to be true. Anything I should watch out for? Would
appreciate any comments on this. Anything better? Thanks!
World Savings is a very reputable savings bank in California, often paying
better rates than most other California banks. If one is looking at bank
stocks, its parent (Golden West) is a fair target for acquisition - the bank
deals largely in ARMs, and is (I think) the largest western regional bank
not already owned by a national bank (BofA, WellsFargo, WaMu, Citibank).

I used them many years ago when I was attending classes in California.
Consider me a satisfied customer.

http://www.worldsavings.com/servlet/wsavings/savings/smdt-5-month-liquid-cd.html
 
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R

Rich Carreiro

They are offering a great rate of 5.01% on a liquid Internet CD for
only 5 months, and you can take your money out at any time as long as
I think you read it wrong.

When I went to their website, the 5.01% CD was a 5 *year* one, not a 5
months one. The 6 month one was only 3.45%.

Keep in mind that a 6 month US T-Bill is around 4.6% and is exempt
from state income tax (and can be bought at auction commission-free
via the US govt and some brokers (Fidelity, for one)).
 
C

catalpa

They are offering a great rate of 5.01% on a liquid Internet CD for
only 5 months, and you can take your money out at any time as long as
you keep $5,000 in there. I'm not familiar with that bank. Is it safe
to send them a good sized check? Any way to protect myself from fraud.
I checked out the bank and it has a 4 star rating. This just seems a
little too good to be true. Anything I should watch out for? Would
appreciate any comments on this. Anything better? Thanks!
Very strange. Through clicking on a Google ad ( Google search on "world
savings bank" ) the initial World Savings Bank web site offers a "5-Month
Liquid Internet CD" at 5.01% APY, but when you click "Apply Now" it is
nowhere to be seen. If it is available I don't see how to get it.

HSBC is currently offing 4.80 % on savings accounts, so 5.01% is in the
ballpark. Nothing better at the same risk level. If you live in CA, 6 month
Treasury Bills are the safest and best way to go ( no state income tax on
any US Government bill, note or bond ).
 
B

Bucky

Rich said:
Keep in mind that a 6 month US T-Bill is around 4.6% and is exempt
from state income tax (and can be bought at auction commission-free
via the US govt and some brokers (Fidelity, for one)).
One thing that I recently figured out about T-Bills is that the quoted
rate is not APY (which is how it should be compared to CDs). For
example, the 6 month bill on 2/23 is quoted at discount rate of 4.55%
and an investment rate of 4.72%. But in reality, the APY is slightly
higher at 4.75%. Factor in state tax, and I'm never buying a CD again.
 
S

sheellah

I thought at first it was a typo so I called them to point that out.
They confirmed that it was a special internet promo and that you could
get that rate for 5 months. The promo just started they said so it
should run a while. That's the best rate I have found.

My concern is fraud, in someone else using their name and sending a
check to them, instead of to the bank. Anyway, I can protect myself
from that?

<< think you read it wrong.


When I went to their website, the 5.01% CD was a 5 *year* one, not a 5
months one. The 6 month one was only 3.45%. >>
 
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T

Tad Borek

I thought at first it was a typo so I called them to point that out.
They confirmed that it was a special internet promo and that you could
get that rate for 5 months. The promo just started they said so it
should run a while. That's the best rate I have found.

My concern is fraud, in someone else using their name and sending a
check to them, instead of to the bank. Anyway, I can protect myself
from that?
FWIW, this is a real bank, they have branches here in downtown SF and
round the Bay Area. They've been advertising above-average CD rates in
the SF Chronicle for a few years now. I guess they're trying to attract
new deposits, by offering these promotional rates. (Of course they're no
doubt loaning it out for more than 5.01% so they aren't exactly losing
money.) I believe the CDs are FDIC insured, correct?

RE: the theft concern - it's easy to verify the mailing address for the
bank, just go to the bank's web site.

With interest rates creeping up it should become easier to find these
high-4%-low-5% kinds of rates. Some money market funds are paying in the
mid-4% range.

-Tad
 

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