Competitive Long-Term CD Rates at OneWest Bank - Available Nationwide
OneWest Bank continues to offer some competitive long-term CD rates. These include a 3.00% APY 60-month CD and a 2.90% APY 48-month CD. The shorter terms are not quite as competitive. Minimum deposit is $1,000. The CDs are also available in an IRA. These rates are listed at OneWest Banks rates page as of the morning of 6/14/2010.
OneWest Bank used to be IndyMac Bank. The FDIC completed the sale of IndyMac in March 2009 to new owners who renamed it OneWest.
One nice new feature at OneWest's website is the online chat service. I used that this morning to ask a few questions about the CD. I first tried to find out if the current rates were likely to change soon. The CSR would not even guarantee that the listed rates would last through the day. She did say that they will lock your rate in for 3 business days to guarantee the rate at the time you apply. As one reader mentioned in my last OneWest post, 3 days is miserly especially for those who prefer to mail in a check. If you want to ensure your deposit arrives within 3 days, you can fund the CD with an ACH transfer or a wire transfer. Also, for those in California, you can open and fund the CD at a OneWest branch.
According to the CSR, there is no hard credit inquiry in the application process. They only use ChexSystem.
When the CD matures, I was told that you have three options to close the CD and receive the funds:
- Send you a check by mail. Regular mail is free. 2nd day mail is $5, and overnight mail ins $10.
- Wire transfer for a $30 fee
- Transfer the CD funds to your OneWest liquid account (i.e. e-Money Marketa)
According to the CSR, the check and wire transfer options require a signed written request. However, option 3 with an internal transfer does not require a written request and it can be done by phone.
Some important CD details are listed in OneWest's Terms and Conditions (pdf). These include:
- Early withdrawal penalty is 6 months interest for terms of 1 year and over on the amount withdrawn
- Withdrawals of available interest are permitted at any time during the term of the CD
- The interest will be credited monthly or quarterly and at maturity
- Interest may be paid to your liquid OneWest account, reinvested into the CD, transferred via ACH to another bank or paid by check
- Grace period at maturity is 7 days
Since OneWest Bank was just established in 2009, it doesn't yet have ratings for safety and soundness at BauerFinancial or at Bankrate.com. At DepositAccounts.com, we give OneWest an overall health score of 4 out of 5 (see our OneWest Bank rates and reviews page). The bank has been a FDIC member since it was established on March 19, 2009 (FDIC Certificate # 58978).
Why Choose OneWest Bank over Ally Bank?
OneWest Bank's 4-year and 5-year CD rates are currently a little higher than Ally's CD rates. The big advantage at Ally is its very mild early withdrawal penalty of 60 days of interest (see my Ally Bank CD review). OneWest Bank has a more traditional penalty of 6 months of interest. This is better than several other institutions which offer top long-term CD rates, but it's not close to Ally.
Ally Bank does not offer IRA CDs, so that may be another reason for some people to choose OneWest. Also, for those in California who prefer to bank at a branch, OneWest would be the only choice. Ally Bank is an internet-only bank.
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