WaMu Increases Saving Rate to 4.00%

We just received notification that WaMu is increasing their online savings rate from 3.75% to 4.00% effective immediately. According to our rate table, that is the highest short term rate available outside of the credit union loyalty rates we discussed earlier.

Based on the user feedback, about 70% of users have had a good experience with the bank so that makes there offer a bit more impressive.

The down side is that WaMu is in a bit of financial trouble. They need to raise capital ergo the new rate. A few people have asked if they should pull their money out of WaMu. I tend to believe in the banking system and FDIC. As long as your balances are under the $100,000 limit and your account is FDIC insured, I suggest getting the best rate you can.

Some will argue the extra .50% in interest is not worth the trouble or risk but I personally think it is a good option if are looking for the best rate without jumping through hoops.

What do you think?