Indymac Bank raised its special online CD rates, and these now match the short term Featured CDs that Wachovia is offering. The new Indymac CDs include a 4.00% APY 6-month CD and a 4.25% APY 12-month CD. The minimum deposit is $5,000, and it requires new money.
Please refer to my April Indymac post for more details about the CDs and my experience opening and closing an Indymac CD.
I had expected Wachovia's new CDs to put upward pressure on CD rates from other banks. Hopefully, we'll see other banks follow Indymac and match Wachovia new CD rates.
Please refer to my Wachovia post for details about Wachovia's new Featured CDs which include a 4% APY 7-month CD, a 4.25% APY 12-month CD and a 5.00% APY 36-month CD. I just noticed that Wachovia's website is now showing both the 4% and 4.25% CDs. In addition, both are showing up in the online application.
Indymac continues to receive bad publicity regarding its troubles in this mortgage mess. This WSJ article reports that Moody's Investors Service cut the servicer-quality ratings of IndyMac Bancorp Inc. on concerns about lack of capital. As with any bank, make sure to stay below the FDIC limits (see my FDIC post). To review Indymac's financial details, refer to this FDIC page.