Dedicated to Deposits: Deals, Data, and Discussion

Major Rate Changes at Indymac Bank

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

Indymac Bank just made some major rate changes to its online CDs and E-Money Market Account. The E-Money Market rates got hit hard. Just like what they did to the old Internet First Rate MMA, they slashed rates on the lower tiers. The yield for balances between $10K and $25K is now only 3.10% APY (down from 3.85% APY). To receive the top yield of 3.70% APY now requires a balance of $75K.

Indymac also slashed the 12-month CD yield by 30 basis points. The new 12-month CD yield is now 4.15% APY. The old 4.45% yield had just came out on Tuesday. For the last two weeks, Indymac rates have been very volatile.

On the positive side, they increased the yield on the 9 and 10 month CDs to 4.05% APY. Below is a list of all of the Online CD and money market account rates along with the recent rate changes.

Indymac rates as of 7/11/08:

CD Term APY Change
3-month 3.30% -0.40
6-month 3.75% -0.35
9-month 4.05% +0.20
10-month 4.05% +0.20
12-month 4.15% -0.30
13-month 4.15% -0.25
18-month 4.40%
24-month 4.65%
36-month 4.45% -0.40

E-Money Market

Tier APY Change
under $10K 1.35%
$10K - $25K 3.10% -0.75
$25K - $50K 3.30% -0.60
$50K - $75K 3.65% -0.30
over $75K 3.70% -0.30

Note, some of the above CDs are specials and require new money. However, readers have reported Indymac being lenient with this requirement. Please refer to my April Indymac post for more details about the CDs and my experience opening and closing an Indymac CD.

To review the latest Indymac news and important FDIC facts, please refer to this Monday post.

It would definitely be wise to stay under the FDIC limits. This FDIC Indymac page has more of their financial details.

Thanks to the readers who mentioned these rate changes in the comments.

  Tags: CD rates, savings account

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Comments
4 Comments.
Comment #1 by Anonymous posted on
Anonymous
Low rates may be moot: unconfirmed rumor about FDIC takeover
http://ml-implode.com/imploded/lender_IndyMacBancorp_2008-07-07.html

1
Comment #2 by Anonymous posted on
Anonymous
Just shut down by the OTS and FDIC.

1
Comment #3 by Anonymous posted on
Anonymous
Just for accuracy, you compared apples and oranges. The 6- and 9-month rates also dropped by 20 basis points. You compared the in-branch rate with the online rate!

Also, the top rate on the MM account had been at the $75,000 level for at least several weeks.

1
Comment #4 by Anonymous posted on
Anonymous
This is exactly why you should not chase the best rate.

1