Dedicated to Deposits: Deals, Data, and Discussion

4.85% 40-Month / 4.55% 25-Month CD at Irwin Union Bank


Update 11/15/08: The CD rates have been shown to vary based on location. The bank's website lists much lower CD rates (3.25% APY 15-mo, 3.49% APY 24-mo, 3.75% APY 40-mo) for zip codes from the following states: AZ, CA, NY, FL. The high CD rates still show for some states. I've verified this for zip codes from the following states: TX, IL, IN and NV. Please comment if you've verified rates for different states.

Irwin Union Bank has some attractive rates on its promotional CDs called Harvest CDs: 4.85% APY 40-month, 4.55% APY 25-month and 4.25% APY 15-month. The minimum deposit is $10,000, and it requires new money. The offer is scheduled to end on 11/30/2008.

I called the bank yesterday, and I was told that these CDs are available to people in any state. There's an online application that allows funding by ACH. Some of the CD features that I was told by the CSR include:
  • Early withdrawal penalty of 6 months interest
  • 10 day grace period at maturity
  • interest payments can be paid monthly or quarterly
  • interest compounds quarterly
  • Requires written request to close CD (mail or fax)
  • ACH withdrawal at closure is an option
These CDs are also available at the bank's branches which are located in Arizona, California, Indiana, Kentucky, Michigan, Missouri, Nevada, New Mexico, Utah and Wisconsin.

I last reported on Irwin Union in October when it was offering a 5.05% 25-month CD.

As reported by this Indy Star, the bank has been hurt by its home equity loans in western states. It reported a $54 million loss for the third quarter. However, investors have promised $37 million in new capital. According to the article, the bank is "not close to the danger point."

As you would suspect the bank's financial ratings for soundness are a little weak: 3 stars (adequate) at BauerFinancial and 2 stars (below peer group) at Both ratings are based on 6/30/08 data. As I recommend with any bank, it's best to stay under the FDIC insurance limits.

The bank has been FDIC insured since 1934 (FDIC Certificate # 10100). Note, there are actually two Irwin Union Banks with different charters. The one with Certificate # 10100 is Irwin Union Bank & Trust Company. The other one is Irwin Union Bank, F.S.B. (FDIC Certificate # 57068). Both are part of the bank holding company, Irwin Financial Corporation.

Credit for this find goes to BestCashCow.

  Tags: Indiana, California, Utah, Nevada, Michigan, Kentucky, Arizona, Wisconsin, CD rates, Missouri, New Mexico

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Comment #1 by MrFrugality (anonymous) posted on
There appears to be a wide variation in the rates offered for the Harvest CD's based on geographic area. These are the website posted rates for the Phoenix, AZ metro area.

Harvest CD 15 Months 3.25 APY
Harvest CD 25 Months 3.49 APY
Harvest CD 40 Months 3.75 APY

These are much lower than the rates you quoted, Banking Guy. What zip code shows the rates you mention?

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
I verified the rates for a few zip codes. I'm not sure if the rates have changed or if I had just been lucky with the zip codes I tried. I've updated the post with some states that seem to qualify for the high rates and those that don't.

Comment #3 by Anonymous posted on
These rates are available for Michigan zip codes too. Says they are available until November 30.