Dedicated to Deposits: Deals, Data, and Discussion

IndyMac Federal Bank CD and Money Market Rate Changes


Indymac Federal Bank has recently made some changes to its CD rates. Its new online CD special is now the only competitive deal with a yield of 4.15% APY for a 7-month term. The standard online CD rates are all below 4% except for the 12-month term which is at 4.00% APY.

The yield of the E-Money Market's top tier went up 5 basis points to 3.75% APY. This requires a balance of $50K. The other tiers remain the same and are shown below:

E-Money Market

Tier APY
under $10K 3.10%
$10K - $25K 3.30%
$25K - $50K 3.65%
$50K - $75K 3.75%
over $75K 3.75%

CD Rate Matching

Many readers have reported success in having IndyMac match CD rates of other banks. When WaMu was offering a 5% 12-month CD last week, a reader commented:
Indymac happily matched WaMu's promo rate of 5% for me today and it was all new money, not a redeemed CD.

WaMu's 12-month CD yield is now down to 4.50% APY, but Corus Bank has a 4.75% APY 12-month CD and a 4.25% APY 6-month CD. So before you open an IndyMac CD based on the published rates, you may want to call and see if you can at least get them to match Corus Bank.

CD Features and Issues

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. Note, opening a CD at IndyMac can be slow. Last year it took over a week before they pulled the money from my checking account and another week before I received the new account documentation. A reader has commented of similar delays on his recent new CD under the new IndyMac.

IndyMac's Future

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.

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.

Thanks to the reader who mentioned these IndyMac rate changes.

Related Pages: money market accounts, CD rates

Related Posts

Comment #1 by Anonymous posted on
I just closed a mature CD at Indymac. It was a nightmare dealing with them from start to finish. Never again will I open a CD where I am not close enough to walk into the branch.

Comment #2 by Anonymous posted on
Anonymous 9:01 beat me to it -- unless I know ahead of time that I can transfer money from a closed CD online or by telephone, I will only deal with banks or CUs where I can walk in to a branch.

By the way, the best way to fund an IndyMac CD is to go to a branch. They've let me open online specials at the branch -- this was before the Feds took over.

Comment #3 by Anonymous posted on
Another bank went under. 10th of the year.