Will WaMu Rates Stand After Failure?

If you hadn't heard, Washington Mutual failed and was acquired by JP Morgan Chase last week. Just before they failed, they offered attractive 5% APY CDs. Some people even report buying the CDs over the weekend.

Will you continue to earn that rate now that Chase owns the bank?

My understanding is that the rate will most likely change. Washington Mutual technically failed and went under control of the FDIC. As a result, the buying bank is allowed to break agreements such as CD terms. Chase says they'll keep the CD rates while they figure out how to complete the merger, but 5% is awfully high for safe money.

Chase says they'll provide an update on interest rates "soon".