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Rate Changes at Indymac Bank - Money Market Rates Down, 3-Month CD Now 5.65%

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Indymac Bank changed their rates today on the money market and CDs today. As of this morning, the new top yield for the Internet First Rate Money Market Account was listed as only 4.25% APY. This was such a big drop that I suspected a web posting mistake. I contacted Indymac and confirmed that the posted rates are incorrect. However, the bad news is that the rate did go down. According to the customer service rep, the top yield is now only 5.25% APY. Below shows how the rate tiers have changed. The new rates are what I was told by the customer service rep: [Update: These new rates are now listed at Indymac's website as of 10/16/07.]

Balance Old APY New APY
$1K-$10K 1.70% 2.00%
$10K-$25K 1.80% 4.25%
$25K-$50K 5.50% 5.25%
$50K+ 5.50% 5.25%

In August Indymac began offering a top yield of 5.75% APY on this money market account. In the last couple of weeks, this top yield had been declining and was at 5.50% APY before today. Since this money market account doesn't have much history of top rates, it's hard to say if even this 5.25% will last. For more info on this account, please see my August post.

5.65% 3-Month Internet CD

The good news with the rate changes is that 3-month Internet Customer Term CD yield increased to 5.65% APY. I confirmed with the CSR that this yield was correct. This is down from the 5.75% APY that Indymac was offering on its 4-month internet special. The yield on that is now only 5.40% APY. For more info on Indymac CDs, please refer to this Indymac CD post.

Thanks to the readers who mentioned these rate updates in the finding deals post.
  Tags: CD rates, savings account

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Comments
2 comments.
Comment #1 by CornHusker (anonymous) posted on
CornHusker
Their 5.40% 7 days Liquid CD is discontinued for new customer. But I have been told exsiting account will continue renew.

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Comment #2 by Anonymous posted on
Anonymous
For me IndyMac has proven to be very difficult to deal with. I was in a grace period for a 12 month CD. Yesterday I called and asked that it be rolled into a 3 month 5.65% APY CD. They said they could not do it on the phone and that it could only be done online. I then went online and selected the option to rollover into the selected period CD (no rates are listed here!). I selected 3 month and expected some confirmation page indicating a summary of the transaction. Instead they said thank you for the transaction and that I would be receiving an email confirmation. I received no indication of the CD rate nor did I receive any confirmation number that I just directed this transaction on the account. After an hour or so I followed up with a secure email to confirm that this particular account was directed to the 5.65% 3-month CD. The email also indicated that it was disconcerting that one can't confirm a. they sent an email, b.that there was any transaction, and c. the CD rate of the resultant transaction.

Today I resent the email and again no response after ~6 hours. Just a few moments ago I noticed that the account indeed rolled over into a 3 month CD but at 4.740% APY. I called to ask what was going on. First they said that this APY was not offered in my state! I told them that a representative yesterday indicated that I could only do it online. The representative put me on hold then came back to tell me that the 5.65% APY was only offered for new money. I got rather angry and asked to speak to the supervisor whereupon they said they would change the rate. They indeed changed the rate but it was not a pleasant experience. This is not the first time I have had issues with IndyMac. Sure they may offer good rates but one needs to really watch what they do.

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