Dedicated to Deposits: Deals, Data, and Discussion

Indymac Bank Raises CD Rates - 4.00% 6-Month, 4.25% 12-Month

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

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.
  Tags: CD rates

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Comments
11 comments.
Comment #1 by Anonymous posted on
Anonymous
Just spoke with a really helpful Indymac CSR named Mike(841) in Pasadena. He told me they are expanding Pasadenas CSR's to 50 and DECREASING overseas CSR's to 10. Also expanding Hours available for Pasadena to 11:00am PST. Thank you Indymac for making the customer service experience more convenient.

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Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
That's a good sign. Often when banks are having financial problems, they start slashing customer service. Glad it looks like they're not going down that road.

1
Comment #3 by Anonymous posted on
Anonymous
I opened up the 10-month CD a couple of days ago. I spoke with two CSRs in Pasadena on as many days to have all my questions answered; they both sounded sufficiently authoritative so as to enable me to reach my comfort zone regarding how well they know what they're talking about. I've had prior CDs with Indymac; the only downside in closing out an Indy CD is the rather steep $30 they charge for wiring your funds(which they accomplished on the first business day after the maturity date.) After I closed out a money market account with them a few years back, I realized that waiting for a check in the mail was too aggravating an experience.

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Comment #4 by Anonymous posted on
Anonymous
be carefulif you are putting money with this bank -- their stock is trading near $1, stocks that go unde $1 can be removed from the stock exchange.

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Comment #5 by Anonymous posted on
Anonymous
Being a dollar stock has nothing to do with your money being FDIC insured. Get a life! You must own the stock and are disgruntled.

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Comment #6 by Anonymous posted on
Anonymous
Not sure what this means if anything but I thought I would pass it along. I have a $5000 cd with Countrywide that was brokered thru Schwab. The cd term was 20 years at 6.5% and is callable. Well, guess what, it is being called as of July 14. Bac will probally get rid of any high paying rates from countrywide that they can. Don't know if this is a trend or not. At least I won't have trouble closing the cd out like I do at IndyMac.

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Comment #7 by Anonymous posted on
Anonymous
IndyMac shares are finally down to a mid-day low of $0.94 at one point. One of our sources states, "Pretty much we were told informally that if we did not get a capital infusion we would not make it and that we had a 50/50 chance of obtaining said infusion." IndyMac is going out of business stay away!

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Comment #8 by Anonymous posted on
Anonymous
Re:
Anonymous said...
Being a dollar stock has nothing to do with your money being FDIC insured. Get a life! You must own the stock and are disgruntled.

you are correct about FDIC if your bal is under $100k but dont kid yourself, it is not smart to open and acct with a troubled bank, esecially with all the warning signs. you my friend must work there and are clueless to what is happening in the real world.

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Comment #9 by Anonymous posted on
Anonymous
it is not smart to open and acct with a troubled bank,

All banks are in trouble now. No, i do not work for Indy. Just know a good rate when i see one. Keep your accounts under FDIC limits and you have nothing to worry about. ALL BANKS ARE IN TROUBLE!

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Comment #11 by Boby (anonymous) posted on
Boby
Hello. I find your blog very interesting. I think that everyone had something to do with banks. It is hard to choose a good and reliable one. After so many banks I had to deal with I should say that Indymac Bank is the best one. I learned about it from www.****edconsumer.com. Although the feedbacks about the company were not very positive I still ran a risk and went there.

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