Dedicated to Deposits: Deals, Data, and Discussion

4.15% 6-Month CD at Indymac Bank, Opening/Closing Indymac CDs and Indymac's Financial Health


Update 7/11/08: FDIC puts Indymac Bank into conservatorship. See post for more details.

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 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.

  Tags: California, CD rates

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Comment #1 by Anonymous posted on
I live in a Caifornia town having an Indymac branch and deal there regularly. I have had many of their products from savings, money market, cds, IRAs, checking. Their customer service is excellent with CSRs knowledgeable and definitely NOT the "middle school mentality" of many of the other local institutions. Hopefully IndyMac will survive this banking crisis; they deserve to continue!

Comment #2 by badger (anonymous) posted on
I just opened a 6-mo CD and E-money market today. The online app doesn't let you fund the initial deposit with ACH. You can only choose either Existing Indymac Account, Wire, or Check. Also, there's no regular savings account (the $250 one) openable online, only the E-money market savings.

Comment #3 by Anonymous posted on
I have stated on here before that I consider Indy-Mac a roach motel for CD money. Took 3 weeks to get my first CD with them closed and receive the check. Since I have several more there I wrote a letter for each CD instructing I did not, under any circumstances, want them to rollover and ask that they confirm receipt of these letters and that the instructions would be carried out. It took 3 e-mails from me to finally get a reply saying the letters were received and the instructions would be carried out. One day before the 1st maturity date I sent them a e-mail reminding them of all the above. You guessed it, the CD was rolled over. The new rate is 2.52% which I consider a insult instead of a rate. I called yesterday and they agreed to take care of it but it still shows in my account today. Will maybe get the check in about 10 days. I guess I will open a MM account just so I can get the money out of my CD's. Since the 1st poster here thinks they are so great I have to wonder if he/she has ever dealt with a good bank. I have dealt with about 25 on line banks and consider Indy-Mac, Wamu, Key and Amtrust the worst of the bunch. By far the best is Countrywide, Gmac, and Charles Schwab but only Countrywide has stayed competitive with their rates.

Comment #4 by Anonymous posted on
Just opened their 12 month CD over the phone. I had a CD previously with them so they had all my info., and just verified and opened my CD. The customer rep also said they had a 10 month CD at 4.15 APY also. All went smoothly. janjen

Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. How did you fund the CD?