Dedicated to Deposits: Deals, Data, and Discussion

Update on Wilshire State's Bank Installment Savings Account


Wilshire Bank
This may be the last week to lock in rates from 3.82% to 4.34% APY on Wilshire State Bank's Rainbow Savings Account. A reader reported being told while he was at a Wilshire State branch that the rates are scheduled to fall next week (11/02/09). The Rainbow Savings Account is an installment savings account in which you make equal monthly deposits during the term rather than one initial deposit like a CD. However, like a CD the rate is fixed during the term.

The current rates as listed at Wilshire State Bank's Rainbow Savings page as of 10/27/09 are shown below. These rates assume you have automatic transfer from a Wilshire State Bank deposit account.
  • 4.34% APY 36 months
  • 4.08% APY 30 months
  • 4.08% APY 24 months
  • 3.82% APY 18 months
  • 3.82% APY 12 months
If you want to compare the above rates to CDs with comparable maturities, it requires that you consider the rate you receive on the savings or checking account that holds the initial lump sum. The monthly deposits would come from this account. In this previous post, I calculated the following APYs which assume you have both the Rainbow Savings Account with the APYs above and the eLink Savings account with a 1.75% APY for the entire term. These estimated rates are shown below:
  • 3.06% APY 36 month
  • 2.93% APY 30 months
  • 2.94% APY 24 months
  • 2.83% APY 18 months
  • 2.86% APY 12 months
Maximum contract amount is $100,000 per customer. There's an online application for this Rainbow account, and I've been told by the CSR that it's available nationwide. I have more details about opening this account in my April review of Wilshire State Bank. Additional useful details are available in this Fatwallet thread. Please contact the bank for the latest instructions for account opening.

You can also open the Rainbow Savings account at a Wilshire State Branch. Branches are located in Southern California, New York, New Jersey and Dallas, Texas.

The bank's ratings for safety and soundness continue to be strong: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Both ratings are based on 6/30/09 data. The bank has been a FDIC member since 1980 (FDIC Certificate # 23301).

Other Installment Savings Accounts

Most banks that offer installment savings accounts require a branch visit. One is Hanmi Bank in California which continues to offer very competitive rates on its installment savings account (see account review). To find other installment savings accounts, refer to my Installment Savings Account Page. Be sure to check with the bank for the latest rates. If you've found any other bank offering an installment savings account, please leave a comment.

Related Pages: New York, California, New Jersey, Wilshire Bank, Texas

Related Posts

Comment #1 by gaelicwench (anonymous) posted on
Well, I went ahead and applied for both Simple Checking and Rainbow Savings. I am aware, through your previous post(s), that the interest won't be applied initially. But if I did, indeed, lock in that rate, that'll be good enoughj for me.

Thanks a bunch for this update. I wish we'd see more financial institutions offer this method of savings. It gives me the needed incentive to save up, thereby, knowing the consequences should I "dare" to dip into the account.

Banking Guy, I did provide your name on both apps forms. Hopefully, they will know who you are. ;-) Thanks again!

Comment #2 by jwbodnar (anonymous) posted on
Good luck trying to open an account online right now. The web app is not working, and no one at the corporate office seems to have a clue about this or how to work around it.

Comment #3 by Bill (anonymous) posted on
Got the Rainbow Savings and checking account today by going to a branch. Also applied for their eLINK savings which they just lowered to 1.5%. Still a good place to park some money that will eventually move into the Rainbow Savings. Thanks for posting.

Comment #4 by john (anonymous) posted on
The Wilshire rate is down to 3.05%. It is just posted on thier web site. I was not fast enough.