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
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 Bankrate.com. 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.