Indymac Bank just introduced a special 6-month CD with a yield of 4.15% APY. The minimum deposit is $5,000, and it requires new money. Indymac also has a yield of 4.15% APY on its regular 12-month CD. For the other CD terms, the yields are all under 3%.
More CD information is available in their terms and conditions document. Some important certificate of deposit details include:
- Payment of interest on a CD account can be deferred until the following year on accounts with terms of one year or less
- 7-day grace period when CD matures when you can close the CD without penalty
- The early withdrawal penalty: 3 months of interest for terms of 180 days to 364 days, 6 months of interest for terms of 365 days and over (penalites have recently changed)
For customer service questions, you can use their online chat system which worked well for me. Here is some of the infomation I received last year. If any of these have changed, please leave a comment.
- 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
My Indymac CD Experience:
I did not have any problems with my Indymac 6-month CD that I opened last September. I used the ACH option to fund the CD. It did take a week or two before the funds were pulled from my checking account. It then took another week or two before I received the documentation from Indymac which I had to sign and return.
Before the CD matured, I opened Indymac's Super Savings Account. This did take a few weeks to open. Once the account was opened, I linked it to my GMAC money market account (from GMAC). This allowed me to call Indymac when the CD matured and instruct them to close the CD and transfer the money to the savings account. The transfer was done immediately. Then I went into my GMAC account and initiated a transfer out of the Indymac savings account. When you pull using an external account, you don't have to worry about Indymac's $5K maximum transfer limit. I still have $250 in the Super Savings Account for future Indymac CDs. $250 is the minimum balance to avoid monthly fees.
Readers' Indymac CD Experiences:
Several readers with liquid Indymac accounts have reported similar good experiences closing their Indymac CDs. However, many who had to request a check or a wire transfer have reported long delays and other problems.
One tip when contacting Indymac is to call early in the morning (6-7am PST) and you will get CSRs in Pasadena who seem to be more helpful and experienced than the CSRs you get when you call later in the day.
Indymac's E-Money Market Account:
Indymac just recently introduced the E-Money Market Account that has a yield of 4.05% APY and a minimum balance of $1,000 (see post).
Indymac's Financial Health:
Indymac is another bank that's heavy into mortgages and is being hurt by the current credit problems. However, things may turn around at Indymac. The writer of this TheStreet.com article doesn't think there's much risk of Indymac failing. Here's what was stated:
And while several tiny institutions and the larger NetBank, have failed, there's little chance in the short term of the same fate awaiting the largest 100 banks and S&Ls.
Indymac Bank is included in his top 10 list of the largest 100 institutions with the highest level of nonperforming assets.
Since no one knows for sure about Indymac's future, it's wise to stay under the FDIC limits. Please see my FDIC post for more info about what FDIC covers. This FDIC Indymac page has more of their financial details.