Dedicated to Deposits: Deals, Data, and Discussion

5.75% 4-Month CD Special Returns at Indymac Bank

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Update 9/24/07: Indymac's CD rates dropped today. Best yield is now 5.40% APY.

Indymac Bank has brought back the 5.75% APY on its Internet 4 Month CD. Yesterday it had dropped to 5% APY. Perhaps this was only a mistake and not a reaction to the Fed rate cut. Indymac continues to offer 5.70% APY on its 5 and 6 month CD and 5.45% APY on its 12-month CD (see rate table). I don't expect these rates to last too much longer.

Please see my yesterday's post on the Indymac CD details and Indymac Bank info. These CDs can be opened online and funded with an ACH transfer from your checking account.

Indymac Bank is FDIC insured (Certificate # 29730).

Thanks to the readers who mentioned this rate update in the comments.
  Tags: CD rates

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Comments
11 comments.
Comment #1 by barry brown (anonymous) posted on
barry brown
i found that Citizens Bank in NY State(Westchecter/Putnam) still has a 5.50% cd deal for 12 months. The rep stated that this rate is good for 9 more days but requires a checking acct be opened for $500.00 but then you can only keep $40.00 in it.This rate is not on their web site but the phone number for their Somers branch is 914-621-3150

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Comment #2 by Anonymous posted on
Anonymous
Please note the following about IndyMac:

NEW YORK, Sept 19 (Reuters) - IndyMac Bancorp Inc (IMB.N: Quote, Profile, Research), a mortgage lender that is cutting 1,000 jobs and may post its first loss in more than eight years, was downgraded to "junk" status on Wednesday by Moody's Investors Service.

The credit rating agency lowered IndyMac's issuer rating, which measures the ability to honor unsecured obligations, one notch to "Ba1," its highest junk grade, from "Baa3."

Moody's also cut the long-term deposit rating for IndyMac Bank to "Baa3" from "Baa2" and the short-term deposit rating to "P-3" from "P-2." The bank's preferred stock was cut to "Ba2" from "Ba1." Further cuts are possible, Moody's said.

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Comment #3 by Anonymous posted on
Anonymous
At the risk of sounding stupid, does that make the bank CD riskier? I know it would be insured, but, it would not be worth the hassle.
Thanks

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Comment #4 by Anonymous posted on
Anonymous
On a general standpoint I will be shocked if CD rates drop. The opposite is true. Watch the 10 year note and see the rate jump up in the coming weeks.
Cah is king and no one wants to hold US$. The solution is raise the rates for $ notes or starve w/o cash.
I do not believe that locking for more than 1 year makes any sense.

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Comment #5 by Anonymous posted on
Anonymous
The issue is not one of rates. The fact that IndyMac has been downgraded to junk status is a bit of a concern.

Yes, they have FDIC insurance. But, I would prefer to stick with a more stable bank without subprime loan problems.

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Comment #6 by Bill (anonymous) posted on
Bill
Any opinion which will have a better return for 6 months? Lock in 6 months @ 5.7% or take 4 months @ 5.75% and hope to get a good rate after 4 months.

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Comment #7 by Anonymous posted on
Anonymous
I think it makes sense to stay with a stable bank. $100k and 0.5% interest difference is only $250 for six month. Is it worth the hassle to worry about subprime/FDIC insurance etc. ?

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Comment #8 by Anonymous posted on
Anonymous
I do not believe many banks will be allowed to fail because the truth is that too many should. Instead cheap and almost unlimited cash will be given to them.
This "game" will continue until under pressure from a falling $ the rates will make a U-turn at which point double digit CDs will be available. This is going to be a quick process which I would predict will happen within the next year or two but could happen much much sooner.
No one in his/her right mind want to hold cash assets in $ unless the rates go much much higher. The loss of confidence in the $ will drive force us to face the ugly truth.

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Comment #9 by Dalosony (anonymous) posted on
Dalosony
This is a good deal for those that can’t find any better rates. Since Indymac is FDIC insured I wouldn’t worry about it as long as you don’t have more than 100K.

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Comment #10 by Anonymous posted on
Anonymous
I called and confirmed the 5.50% 12-month CD that Barry Brown referenced in the first comment. It is indeed available for another 7 days, however it is specific to two brand-new Citizen's bank locations in NY. I called my local Citizen's branch in Conshohocken, PA, where I have my primary checking account, and they didn't have anything close, unfortunately.

-mct

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Comment #11 by Bill (anonymous) posted on
Bill
Rates were changed today. Highest CD rate now is 5.4% APY on a 4 or 5 month CD.

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