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Competitive Rates on CDs, IRAs and Liquid CDs at OneWest Bank - Nationally Available


OneWest Bank N.A. (Pasadena, CA)
OneWest Bank continues to offer some competitive rates on its CDs, and I just noticed some interesting liquid CDs that it's offering. OneWest Bank used to be IndyMac Bank. The FDIC completed the sale of IndyMac in March to new owners who renamed it OneWest.

Liquid Certificates of Deposit

In addition to competitive rates on the regular CD and IRA CDs, I noticed a liquid CD called Online Keep Your Options Open CD. It has two nice liquid features:
  • Additional deposits allowed any time during the term and must be a minimum of $1,000, with a maximum principal balance of $100,000
  • Two penalty free withdrawals allowed during term
It's a fixed-rate 1-year CD with a minimum initial deposit of $5,000. The rate is not the best for a 1-year term, but it's not bad at 2.00% APY. This rate is listed at the bottom of the bank's rate table as of 7/03/09.

There are a few other liquid online CDs, but they're not quite as flexible. One is the Online 2 Year Flexible CD and the other is the Online Raise Your Rate CD. The Flexible CD is a fixed rate 2-year CD that allows one rate increase 365 days into the term if the 1 year CD rate is higher than the 2 year CD rate. The original maturity date will remain unchanged. All other features are like the regular CDs with no additional deposits and no penalty-free early withdrawals. The Online Raise Your Rate CD is very similar to the Flexible CD except it has a 1-year term, and there's no restriction when the rate can be increased. Unlike the Flexible CD, it appears this one allows the rate to be bumped up to the current 1-year CD. The bump-up limitation is one example of the issues of the rate-bump feature. It's often easy for the bank to keep the current rates low so that there would be little or no benefit to use the bump feature. However, for the Flexible CD, there's no reason not to choose this over the regular 2-year CD since both have the same rate, 2.45% APY as of 7/03/09. The Raise Your Rate CD has a rate a little below that of the regular 1-year CD, 2.10% APY vs 2.25% APY as of 7/03/09.

Regular Certificates of Deposit

The regular online CD rates are competitive. The most competitive include the 12-month term with a 2.25% APY and the 60-month term with a 3.65% APY. Minimum deposit is $5,000. Below is the full list of the online fixed rate CDs as listed at the bank's rate table as of 7/03/09:
  • 3.65% APY 5 year
  • 3.05% APY 4 year
  • 2.80% APY 3 year
  • 2.45% APY 2 year
  • 2.25% APY 1 year
  • 1.75% APY 9 month
  • 1.90% APY 6 month
  • 1.15% APY 3 month
Some important features of the CDs are described in the Terms and Conditions document (pdf):
  • Early withdrawal penalties: 1 month interest for terms under 180 days, 3 months interest for terms of 180 days to under 1 year, 6 months interest for terms of 1 year and over
  • Grace period at maturity is 7 days
  • Interest may be paid to your liquid OneWest account, reinvested into the CD, transferred via ACH to another bank or paid by check
  • Payment of interest can be deferred until the following year on accounts with terms of one year or less
OneWest Bank was closed today for the 4th of July holiday, so I wasn't able to get more details. I have some more details about the CD application process in this post from last year when they were still IndyMac. I don't know how much has changed since then.

Higher Branch Rates

For those who live in California near a branch, you can get some CD rates even higher than the online rates. These include a 2.00% APY 6-month CD, a 2.50% APY 2-year CD and a 3.75% APY 5-year CD. These rates are listed in the bank's branch rate table as of 7/03/09.

IRA Certificates of Deposit

OneWest Bank also offers IRA CDs and money market accounts. Some of the competitive rates include a 2.50% APY 2-year CD and a 3.25% APY 4-year CD. These rates are listed in the bank's retirement account page as of 7/03/09. One feature that's not well described is mentioned on the Online Fixed Term CDs page regarding additional deposits:
Allowed during grace period and retirement account terms of 2 years or less

So it appears IRA CDs with terms of 2-years and under allow additional deposits. I can't find any other details of this so I can't say for sure this is correct. If you get confirmation of this, please leave a comment.

E-Money Market Account

OneWest Bank had been offering competitive rates on its online savings account, the E-Money Market account. Before April, it was offering 2.25% APY on balances of $1,000 and above. But in April the rates on the low tiers went way down. As of 7/03/09, it pays only 0.75% APY on balances of $1K to $10K and 1.25% APY $10K to $25K. You need at least $50K to earn the top rate of 2.00% APY.

Financial/FDIC Overview

With OneWest Bank being a new bank it doesn't have the bad loan baggage of IndyMac. OneWest Bank now has an entry in the FDIC database. The established date is listed as 3/19/2009.

Other High Certificate of Deposit Rates

  Tags: California, OneWest Bank N.A. (Pasadena, CA), CD rates, IRA rates

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Comment #1 by Anonymous posted on
Anyone who has opened a OneWest online CD please report -- how difficult is it to fund online?

I recall opening an online CD at IndyMac but having to go into a branch to fund it with a check because the ACH funding feature simply didn't work.

Comment #2 by Anonymous posted on
Be careful when you say things like "OneWest Bank was closed today"... I have an account there and was skimming your articles and had a brief hiccup when I saw that and didn't realized you menat it was closed for the holiday.

Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
Good point on the closed note. Especially on Fridays! I've added the note about the holiday to avoid any more scares.

Comment #4 by www (anonymous) posted on
I had maturing CD's in March and April that they were willing to match competitors higher rates. Today (7/23) they would not negotiate to keep an account.