WaMu Shut Down!

wamu-shut-downThe office of Thrift Supervision has shut down Washington Mutual Bank and named the FDIC as the receiver. JPMorgan Chase Bank has acquired all the banking assets of WaMu.

What does this mean for WaMu's customers? According to the FDIC the transition will be seamless, there will be no interruption in service. JPMorgan Chase Bank is honoring all deposits.

The following Q&A session will help you decide whether or not to continue banking with JPMorgan Chase Bank.

Are my deposits transferred from Wamu to JPMorgan Chase still FDIC insured if I already have an account with JPMorgan Chase?

All deposits that are transferred from WaMu to JPMorgan Chase will be separately insured for six months after the sale of Washington Mutual Bank. So if your combined deposits are over the FDIC insured limit you have 6 months to withdraw funds to stay within the limit.

Will JPMorgan Chase Bank honor WaMu's 5.00% APY 1 year CD rate?

Yes, JPMorgan Chase Bank is honoring all deposits, including WaMu's promo 5.00% APY 1 year CD.

At this time JPMorgan Chase Bank is still offering the promo 5.00% APY 1 year CD, which is one of the best CD rates available.

JPMorgan Chase Bank 5.0% APY 1 year CD Rate Application

Will checks that I have written on my WaMu checking account clear?

All checks drawn before WaMu closed will be honored as long as there are sufficient funds in the account.

Can I withdrawal funds without incurring an early withdrawal penalty?

Yes, you can withdraw funds from any account transferred to JPMorgan Chase before you enter into a new deposit agreement with JPMorgan Chase.

Will I receive interest accrued on my accounts from JPMorgan Chase?

Yes, all interest accrued through 9/25/08 will be paid at the same rate. 

What about future interest rates?

JPMorgan Chase is reviewing rates and will provide further information shortly.

Do I continue paying any loans I have with WaMu?

Yes,  you need to continue to honor any loans you had with WaMu with JPMorgan Chase since you are contractually required to do so. According to the FDIC website, "The terms of your contract will not change because they are contractually agreed to in your promissory note." 

Where should I send my loan payments?

You should send checks to the same address until further notice from JPMorgan Chase Bank.

Author: Jason P. Jones
September 25th, 2008