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IndyMac Federal Bank Raises CD Rates

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Indymac Federal Bank raised some of its CD rates yesterday. The notable change was on the 12-month CD. The yield increased from 4.15% to 4.25% APY. Below is the full list of rates and the recent changes.

IndyMac Federal Bank rates as of 8/05/08:

CD Term APY Change
3-month 3.35% +0.10
6-month 3.85% +0.20
9-month 4.15%
10-month 3.05%
12-month 4.25% +0.10
13-month 3.80%
18-month 3.90%
24-month 3.80%
36-month 3.95%

E-Money Market (rates remain the same)

Tier APY
under $10K 3.10%
$10K - $25K 3.30%
$25K - $50K 3.65%
$50K - $75K 3.70%
over $75K 3.70%

It appears these accounts have the same features as before. Please refer to my April Indymac post for more details about the CDs and my experience opening and closing an IndyMac CD.

Perhaps the FDIC is keeping rates high so they can maintain customers and deposits to help attract a future buyer. A reader commented that he was able to get IndyMac to match Vineyard's 4.50% APY 6-month CD special. So if you have money in IndyMac, you may want to call and see if you can get a higher CD rate than what's listed.

The FDIC has said it has a goal of selling the bank within the next 3 months. With the FDIC in control, there's no more concern about safety, but there could be a concern that the new bank that buys IndyMac could choose to close existing CDs. Although this may be unlikely since they would want to keep depositors, I've been told that the new bank would have such an option. If rates continue to rise, a CD closure without an early withdrawal penalty shouldn't be a concern.

Last Friday, the former holding company of IndyMac Bank, IndyMac Bancorp Inc., filed for bankruptcy protection (see Pasadena Stars-News article). This doesn't have any effect on IndyMac Federal Bank since the bank was removed from the holding company on July 11th when FDIC took over the bank.

Deposits at this new Indymac Federal Bank are FDIC insured (see Q&A).

IndyMac and FDIC Links

Here's my IndyMac page with all of my recent IndyMac closure posts.

For details and issues regarding using trusts to extend FDIC coverage, please refer to this post. I just updated this post with a recent commenter's experience in trying to get back his IndyMac funds that were over $100K but were insured via revocable trusts.

Please see my Facts about FDIC and NCUA post for more general info and references.

  Tags: California, CD rates

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Comments
14 Comments.
Comment #1 by Sylvia (anonymous) posted on
Sylvia
Joel & Louis Kestenbaum/Fortis Property Group Behind $880M Sale in Boston

The privately held firm headed by CEO Jonathan Landau is controlled by the Kestenbaum family. Joel Kestenbaum is the son of Louis Kestenbaum. Fortis manages some 3 million square feet in commercial properties and about 454 residential units.

Fortis Property Group is leading the “Northeast-based private real estate investment group” that has agreed to acquire the 1 million-square-foot State Street Financial Center at 1 Lincoln Street in Boston for more than $880 million, or $880 per square foot, according to sources familiar with the sale.

Fortis apparently set its sights on Boston following several high-profile Dallas deals where it agreed to pay about $280 million for the three-building, 1.4 million-square-foot office complex known as Galleria Office Towers in Dallas. Earlier in the year, Fortis teamed with Trimarchi Management, also from New York, on the nearly $100 million acquisition of two other Dallas office properties, Harwood Center and Saint Paul Place. It also invested in the $282.5 million purchase of JPMorgan International Plaza in Dallas.

1
Comment #2 by Anonymous posted on
Anonymous
I finally redeemed my last cd with IndyMac. It took 3 calls and about 35 minutes on the phone to complete that difficult task. There is something about close my cd and sent me a check that they don't seem to grasp. Asylum has a new name but same inmates running it. Hopefully the FDIC can find a bank that knows how to run a bank to take it over.

1
Comment #3 by Anonymous posted on
Anonymous
I can confirm that IndyMac will match rates. They just matched WaMu 12 mo CD at 4.50% APY.

1
Comment #4 by Anonymous posted on
Anonymous
I can confirm that IndyMac will match rates. They just matched WaMu 12 mo CD at 4.50% APY.

1
Comment #5 by henry (anonymous) posted on
henry
Inymac is matching WAMU 4.5 APY rate. Just ask. I rolled over all my exisiting CD even before their maturity to 1 yr rate of 4.5 without penalty. They will ask to see the URL to confirm the rate before doing it. I showed them our secret tool..bank deals website. It was fast and smooth. Thanks banking guy. I got the idea from reading your comment about rate matching.

1
Comment #6 by Anonymous posted on
Anonymous
I too used the WAMU website to obtain the WAMU 4.5% APY at IndyMac. They are also flexible - offering my existing CD to be upgraded to the current (better) rate that WAMU was offering. They also flexed where WAMU says they offer 4.5% on the 12 and 13 month CD - I asked that they honor this for the 18 month period. They did this too. What better bank is there than one that is run by the FDIC - I still recommend staying below the insurable limits based on your account style.

1
Comment #7 by Anonymous posted on
Anonymous
Indymac matched WAMUs 12 month CD rate. I just renewed my CD with Indymac with 4.5 % APY for 12 months.

1
Comment #8 by Anonymous posted on
Anonymous
Louis & Joel Kestenbaum/Fortis Property Group Behind $880M Sale in Boston is going bust now ..What a ripoff these two goons pulled off

1
Comment #9 by Mocirne (anonymous) posted on
Mocirne
Has anyone had luck getting Indymac to match WaMu's 5% rate? I had asked and was told by the CSR and manager that they could not due to that being a "promotional rate". I have no idea how the 5% rate differs from the previous 4.50% rate, but I suppose it is all buried in the linguistics somehow.

1
Comment #10 by Anonymous posted on
Anonymous
i got indymac to match the wamu 5% CD for my previous 4.15 % CD i made with the old indymac bank.

1
Comment #11 by Anonymous posted on
Anonymous
Indymac happily matched WaMu's promo rate of 5% for me today and it was all new money, not a redeemed CD.

1
Comment #12 by Anonymous posted on
Anonymous
A Sordid Lawsuit Shakes the Satmar Chasidic world .

Brooklyn N.Y. Lezer ( Louis ) Kestenbaum chairman of the ODA in Williamsburg Brooklyn NY resigned from the ODA soon after settling a lawsuit filed in May 2008 in U.S. District Court for the District of Florida for an undisclosed sum alleging he had a ****ual relationship with a minor, Joel Kestnbaum the son of Louis kestenbaum will become chairman of the ODA.

1
Comment #13 by renee (anonymous) posted on
renee
Louis Kestenbaum/Fortis Property Group Land $880M Sale in Boston

The privately held firm headed by CEO Jonathan Landau is controlled by the Kestenbaum family. Joel Kestenbaum is the son of Louis Kestenbaum. Fortis manages some 3 million square feet in commercial properties and about 454 residential units.

Fortis Property Group is leading the “Northeast-based private real estate investment group” that has agreed to acquire the 1 million-square-foot State Street Financial Center at 1 Lincoln Street in Boston for more than $880 million, or $880 per square foot, according to sources familiar with the sale.

Fortis apparently set its sights on Boston following several high-profile Dallas deals where it agreed to pay about $280 million for the three-building, 1.4 million-square-foot office complex known as Galleria Office Towers in Dallas. Earlier in the year, Fortis teamed with Trimarchi Management, also from New York, on the nearly $100 million acquisition of two other Dallas office properties, Harwood Center and Saint Paul Place. It also invested in the $282.5 million purchase of JPMorgan International Plaza in Dallas.

1
Comment #14 by Anonymous posted on
Anonymous
A Sordid Lawsuit Shakes the Satmar Chasidic world .

Brooklyn N.Y. Lezer ( Louis ) Kestenbaum chairman of the ODA in Williamsburg Brooklyn NY resigned from the ODA soon after settling a lawsuit filed in May in U.S. District Court for the District of Florida for an undisclosed sum alleging he had a ****ual relationship with a minor, Joel Kestnbaum the son of Louis kestenbaumand the CEO of Fortis Property Group will become chairman of the ODA.

1