Wilshire State Bank's Flex CDs - Available Nationwide
Aug 9, 2009 - 6:51 PM by Ken Tumin
Wilshire State Bank continues to offer very competitive rates on its Flex CDs. I first reported on these Flex CDs in June, and the rates have remained the same which make these especially competitive. The rates are 2.30% APY for the 12-month term and 2.40% APY for the 18-month term. Minimum deposit is $10,000, and new money is required. These rates are listed in the bank's Flex CD page as of 8/09/09.
The liquid features of the Flex CDs include:
- Unlimited deposits of at least $1,000, up to a maximum balance of $95,000
- Six withdrawals are allowed within the term (in any amount of $1,000 or more)
When I contacted Wilshire State Bank in April, I was told that the accounts which have the online application can be opened by people in any state. After you submit the application online, you have to print and mail the form. They'll send you a signature card to complete.
In the online application you can select how interest on the CD is to be paid (either credited to a checking or savings account at Wilshire State Bank or at another bank). The application also allows you to add one beneficiary. To fund the CD, they give you the option of mailing a check or transferring from a Wilshire State Bank account. This second option seems to conflict with the small print which states that new money is required.
Wilshire State Bank also offers other very competitive accounts including:
- Regular CDs with APYs of 1.86% 3mo, 1.96% 6mo and 2.15% 12mo
- eLink Savings Account with a 2.25% APY
- Installment Savings Account with rates from 3.82% APY for 1 year to 4.34% APY for 3 years (see review)
Wilshire State Bank is Korean-American bank with branches in Southern California, New York, New Jersey and Dallas, Texas. A reader in my June post commented that "Wilshire Blvd is one of the main streets in Koreatown in Los Angeles, hence the name."
The bank's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 3/31/09 financial data. The bank has been a FDIC member since 1980 (FDIC Certificate # 23301).
Liquid Certificate of Deposit
The add-on CD feature can be very nice to hedge against falling rates. If you think interest rates will rise soon, just open this Flex CD with $10K. If you're wrong, and rates don't go up or if they continue to drop, you can always fall back on this Flex CD and make additional deposits.
The early withdrawal feature is a nice hedge against rising rates. If rates do go up, you can withdraw the money for better returns elsewhere.
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Anonymous - #1, Monday, August 10, 2009 - 3:45 AM
Even though there's a $10,000 minimum to open the account, you don't need to keep that amount in the CD if the rates go up. To avoid an early closing penalty, you need to keep only $1000 in the account (and not make over 6 withdrawals).
Anonymous - #2, Monday, August 10, 2009 - 6:26 AM
There are some additional issues for people that do not have a local branch. Unless you have a bank account with Wilshire or a local branch, deposits have to be made by mail for free or for an ACH transfer for a fee. Withdrawals will also have a similar problem. The rep I spoke with recommended opening a checking account with them as well to make transfers into and out of the account smoother. Their checking accounts have a $500 minimum to avoid fees.
Anonymous - #3, Monday, August 10, 2009 - 8:33 AM
Wilshire Bank has a simple checking account that that is free of fees for minimum balance. They also send a set of checks for free.
Anonymous - #4, Monday, August 10, 2009 - 3:31 PM
If I initiate a ACH from another bank, Do I incur a fee in my Wilshire bank account? anyone know? Thanks!
Anonymous - #5, Monday, August 10, 2009 - 7:38 PM
Online application is somewhat confusing, but we opened an 18 month flex CD at a branch, and all went smoothly.
Anonymous - #6, Tuesday, August 11, 2009 - 12:48 PM
I have an installment account at Wilshire. I initiate ACH from another bank into a simple checking account once a month. No fees.
Anonymous - #7, Tuesday, August 18, 2009 - 8:40 AM
As of 08/16, the 18 month Flex CD is gone and the 12 month is now 2.00% APY.
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