Indymac Bank just introduced a special 18-month CD with a yield of 4.15% APY. The minimum deposit is $5,000, and it requires new money. For those who think 18 months is too long in this rate environment, Indymac continues to offer a 4.05% APY CD with a 10-month term. And if you think 10 months is too long, their E-Money Market Account has a yield of 3.85% APY for balances over $10K. Note, Indymac just recently raised the minimum to earn the top yield of this savings account from $1K to $10K. I wouldn't be surprised to see this raised again. That's what happened to their Internet First Rate Money Market Account. At first you could get the top yield with only $25K. Now it requires $75K.
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)
Indymac's Financial Health:
Indymac is another bank that's heavy into mortgages and is being hurt by the current credit problems. This AP article reported last week about an analyst cutting IndyMac Bancorp's earning estimates and price targets. The analyst said IndyMac "will likely have to raise capital through the sale of assets or from a strategic investor and not through issurance of new stock" since the stock price is now so low.
It's always 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.