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The 11th District Cost of Funds Index (COFI) was updated this afternoon.  The new rate of 2.757% is the lowest rate since the middle of 2005.  The index should go even lower as deposit rates continue to decline.

Freddie Mac has released this weeks rate survey.

Upon completion of their meeting today, the Federal Reserve announced they have kept the Federal Funds Target Rate in a target range of 0.00% to 0.25%.   There will be no change in the Prime Rate today.  The Prime Rate remains at 3.25%.

The Federal Reserve is finishing up a two day policy meeting today and will make an announcement at 2:15 pm Eastern.  At the last meeting they decided to lower the Federal Funds Target Rate to a target range of 0.00% to 0.25%.   They also indicated rates would be held low for a while.  That action resulted in the Prime Rate going down to 3.25%.

It’s not clear what to expect today.  They certainly will want to do something to positively impact consumers and business.  But having previously lowered the rate to near zero percent, their options seem limited.  We’ll keep an eye on their decision and report back later regarding the effects this meeting will have on interest rates.

Previously we noted Californian’s who file early may get their refund on time if they file before February 1.  If you haven’t heard yet, California is out of money and can’t pay income tax refunds on time this year. 

Apparently, the door is already shut on currently getting an income tax refund.   See the Sacramento Bee and ABC News stories on this.

It is not known how long Californian’s will have to wait for their refunds.   The information could not be found at http://www.sco.ca.gov, the State Controller’s website.

I previously wrote about the demise of the WAMU Online Savings account since WAMU was taken over by Chase.   Those accounts are now paying a whopping 1.00%.   Compare this to yesterday’s rates for competitive savings accounts.  Still not so good and I don’t expect it to get better.

Though apparently the WAMU Free Checking Account is alive and well and still a pretty good product.  They offer free checks, free ATM withdrawals, free online banking and free bill pay.  I had this type of account previously and found it to be very good and their website easy to use.  Since there are no monthly fees or check charges, the price is right.  Soon the account will be tied in completely with Chase and bring the benefits of such a large network of branches.  I think Chase will continue with this free product and not make any changes because they are heavily marketing this account right now.

In fact, I found out they are now offering $100 when someone opens an account and sets up direct deposit.   You may need a coupon to get the $100.  Check with your local branch or call (800) 685-1644 to see if they will honor without the coupon.   They have been sending out coupons via mass mail and also have a site set up at http://free.wamu.com to get the $100 offer.  (Although the site wasn’t working properly when I tried to check it out.)  The promo code I got was 3744-ADFF-9691 which says it can only be used once and expires March 28, 2009.   I am not using the code.  So one of you are free to use it to take advantage of the offer.  If mine gets used, you could always try to Google “wamu $100 promo code” by clicking here.

If you have a promo code you won’t be using, please share it with our community by posting the code in a comment below.