A full-page ad in the front section (page A8) in yesterday's Seattle Sunday Times/PI alerted me to WaMu's latest offering called Savings for Success (see note 1).
It's not a new invention, essentially a 1-year CD funded with automatic monthly deposits instead of a one-time deposit (see note 3), but WaMu uses its marketing prowess to dress it up like a super-high-yield savings account with an attractive 5.5% yield. It also delivers the ultimate marketing coup: turning what is normally a negative, not being able to get your money out for a year, into an account FEATURE, saying that the savings is "out of sight and out of mind" for the one-year CD term.
According to the Bank Deals blog, the savings account has been made available in select markets as far back as July. At that time the rate was higher, 7% in Illinois and Texas and 6% in Washington and Georgia (note 1).
It's great marketing that plays right into the new year's resolution mindset this time of year. Surprisingly, the account is not mentioned on the bank's website, even though the call to action (below) includes the bank's Web address. Also, WaMu has not used search marketing to support the print ad. Google searches do not lead to the the bank and a site search at wamu.com leads nowhere.
This is a great product and a good fit for online banking users. Assuming it pencils out in the four test markets, look for the account to debut nationwide in 2008.
Notes:
1. Apparently, the same ad has also run in the Houston Chronicle, but with a 6.5% APY. In the disclosures on that ad (reprinted here), the offer was said to be available in Illinois, Georgia, and Texas. The Seattle Times/PI ad says the offer is only available in Washington.
2. Here's the text in the main paragraph of the ad above:
Your checking and savings needs are officially over. To complement our WaMu Free Checking account, we've created Savings for Success. It's simple. You choose the amount you'd like to save each month – by automatically transferring as little as $25 and up to $500 from your WaMu Free Checking account to your Savings for Success account. There it is kept out of sight and out of mind, earning big interest, and helping you save without even having to think about it. After one year, it's yours to access when we sweep the savings into any savings account you choose. So save like never before and still get free checks for life, free ATM cash withdrawals, and all of the other features of our WaMu Free Checking account. It's banking bliss. To learn more stop by a WaMu near you, call 1-866-808-1396 or visit wamu.com.
3. Update Jan 8: The product, with the 6.5% rate, has also been advertised in The Dallas Morning News (link to the ad here). Also, I neglected to mention that the account can ONLY be funded with automatic debits with a miniumum of $25 per month to a maximum of $500 per month, so it's not an account aimed at large depositers.