Dedicated to Deposits: Deals, Data, and Discussion

Indymac Bank Raises 5-Month Internet CD Yield to 5.70%

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Update 1/21/08: The rates have fallen. Please check with the bank's website for the latest rates.

Indymac Bank just increased the yield on its 5-month Internet CD from 5.55% to 5.70% APY. The minimum deposit is $5,000. The 1-year CD remains competitive at 5.50% APY.

More information is available in their terms and conditions document. Some important CD info from this document includes: Payment of interest on a CD account can be deferred until the following year on accounts with terms of one year or less (could be useful to reduce this year's taxes). The early withdrawal penalties for these certificates of deposit for terms under one year is 1 month of interest. For terms of one and less than two years, the penalty is 3 months of interest. For terms of two years and over, the penalty is 6 months of interest.

For customer service questions, you can use their online chat system which worked well for me. Here is some of the infomation I received:
  • CD can be funded by mail, wire transfer, or electronic funds transfer (ETF) via ACH from a checking account at another bank.
  • If you fund by check, the rate is locked for 12-days from the date you open the account.
  • The online application can be done completely online with nothing to print out.
  • Beneficiaries would be listed as a POD in the account title so it can be used to extend your FDIC coverage over $100k.
  • No hard credit inquiry is done - only ChexSystem

Indymac is still offering 5.75% APY on its Internet First Rate Money Market Account for balances over $25K. Please see this post for more info.

Indymac is another bank that's heavy into mortgages and is being hurt by the current credit problems. Standard & Poor's Equity Research recently downgraded Indymac stock to a strong sell. Bankrate.com gives Indymac 2 out of 5 stars (below peer group) based on 3/31/07 financial data. The bank is FDIC insured (FDIC Certificate # 29730).

Thanks to the reader who emailed me news on this new CD rate.

  Tags: CD rates

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Comments
9 Comments.
Comment #1 by routing (anonymous) posted on
routing
Indymac sends risk signal!
stay away!

1
Comment #2 by kodos (anonymous) posted on
kodos
@ routing -- Right on signal, wrong on warning. FDIC insured = risk-free for insured deposits. Let 'er rip.

1
Comment #3 by Jimbo (anonymous) posted on
Jimbo
Not liking Indymac. I had 2 cds mature this month and sent them a letter of instruction. Checked on- line 2 days after maturity and found both accounts renewed. After 20 minutes, I finally got through to customer service, I think it's the same outfit that does Dell customer service... hard to understand. And was told yes, they have been renewed; but Oh, we do have a letter to close...so we will do that. Same thing next day, after 20 minutes on hold was told they were renewed but that they had a letter to close. Got a call back from CSR next day saying accounts were closed and because of their error checks would be overnighted... and they were. But too much hassle to close and I prefer to speak to someone without a 20 minute hold and who speaks understandable English.

1
Comment #4 by Anonymous posted on
Anonymous
I was just on Indymac website and saw they have a 4 month Internet ONLY CD yielding 5.75% APY...$5,000 min.

Kurt

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Comment #5 by Anonymous posted on
Anonymous
Our local paper in Southern California carries a quarter-page multi-color IndyMac ad for a 5.70& APY 5-month CD -- but you must have Premium Checking. Without their checking account the APY is 5.60%. This may be an in-branch rather than an internet deal because the minimum balance is $1,000.

1
Comment #6 by Anonymous posted on
Anonymous
I just tried to open an account with Indymac today with a CSR over the phone and towards the end of the questions, my phone was accidentally disconnected. I called again and spoke with someone else (who happened to be located in INDIA?!), who said that he couldn't find my information anywhere in the system--probably because it wasn't officially opened. Well, I know that I didn't finish answering ALL their questions and he wasn't able to give me my account number yet since the phone disconnected, but I gave out ALL my personal information over the phone to the CSR. Should I be worried??? Is opening an account over the phone REALLY SAFE??? Is it better to open accounts online?? Has someone had an experience simiilar to mine?? Please help!!! By the way, the CSR on the phone were not very knowledgable. Also, the second CSR guy took about twenty minutes just to find out about the 4 month internet only CD yielding 5.75%. He was not even aware of this and kept quoting me the old rate.

1
Comment #7 by Anonymous posted on
Anonymous
now they also have 5.70% APR for 6 month. But I decided not to open the CD since jimbo had problem when closing the CD. It's better to go with 5.50% APY with countrywide (below $100K of course), and you can still move money around anytime you see a good deal.

1
Comment #8 by Anonymous posted on
Anonymous
I had two CD's mature this month @ Indymac and it was stressful to get to talk to someone who knew what they were doing, but I hung in there and found a knowledgeable person and they did not want to lose my funds so they agreed to match the best rate that I could find which was Countrywide @ 5.49% with an APY of 5.65%. I thought some of you might like to know that the advertised rate is not written in stone and they will match their competition.

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Comment #11 by Boby (anonymous) posted on
Boby
Hello. I find your blog very interesting. I think that everyone had something to do with banks. It is hard to choose a good and reliable one. After so many banks I had to deal with I should say that Indymac Bank is the best one. I learned about it from www.****edconsumer.com. Although the feedbacks about the company were not very positive I still ran a risk and went there.

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