Update on Wilshire State's Bank Installment Savings Account

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 Bankrate.com. 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.

Tags: New York, California, New Jersey, Wilshire State Bank, Texas