Dedicated to Deposits: Deals, Data, and Discussion
Wilshire Bank2.28%$1k-36 Month Rainbow Savings w/ Automatic Transfer from a WSB Deposit Account
Wilshire Bank1.51%$1k-12 Month Rainbow Savings w/ Automatic Transfer from a WSB Deposit Account
Accounts mentioned in this post. Rates as of August 20, 2014

Update on Wilshire State Bank's Installment Savings Account


Wilshire Bank

Wilshire State Bank continues to offer an installment savings account that it calls Rainbow Savings. I last reviewed this account in January, and I'm pleasantly surprised to see the rates have gone up. The best rates require an automatic transfer from a Wilshire State Bank deposit account. The yields range from 2.02% APY for a 1-year term to 2.79% APY for a 3-year term. These rates are listed in the Rainbow Savings page as of 11/22/2011.

For those trying to squeeze as much interest from deposit accounts as possible, the installment savings account is something to consider. It's not a common account. Most are offered by banks that serve the Korean American communities.

In an installment savings account 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. You often get a higher rate if you also have a checking or savings account with the bank and set up automatic monthly transfers from that account into the installment savings account.

One nice thing about the Rainbow Savings account is that there is no early withdrawal penalty. However, if you close before interest is credited, you lose the accrued interest.

Maximum contract amount is $100,000 per customer. The contract is the total value of the account at maturity. For the 3-year account, this would require monthly installments of $2,672.

There's an online application for this Rainbow account, and in the past I've been told by a bank representative that it's available nationwide. I have more details about opening this account in my April 2009 review of Wilshire State Bank.

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. By the time the installment savings account matures, all of the principal of the savings or checking account has been transferred to the installment savings account. So about half of the money earns the savings/checking account rate for the term, and about half earns the installment savings rate. So you can estimate the equivalent CD yield by averaging the two rates. You can get higher rates if you can keep the money in a higher interest account before it is moved into the installment account.

Wilshire State Bank does offer an online savings account. It's called iLink Savings, and it requires a checking account. The interest rate is a little low. It's currently 0.85% APY for all balances. Minimum balance to avoid a $5 monthly fee is $500.

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

Wilshire State Bank has an overall health score of 3 stars (out of 5) with a Texas Ratio of 19.41% (average) based on June 2011 data. Please refer to our financial overview of Wilshire State Bank for more details. The bank has been a FDIC member since 1980 (FDIC Certificate # 23301).

Other Installment Savings Accounts

For those in Los Angeles area, you can get higher rates in an installment savings account at Pacific City Bank. As of 11/22/2011, it's offering a 5-year installment savings account with a 3.05% APY with auto-transfer from a Pacific City Bank account. Some other banks that offer installment accounts include United Central Bank, NewBank and Woori American Bank

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

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Comment #1 by me1004 posted on
OK, so then doing the arithmetic, if you take out a 1 year CD, and put your money in the .85% savings account (I hope that rate doesn't drop!), then the effective interest you get on the CD would be around 1.43% APY, give or take a little. Right? But the savings rate can't drop for the next 12 months. 

I guess its better than anything else out there, but I don't like the messy monthly transfer. Why can't they just make it clean by offering a 1-year CD for 1.43% -- stop with the confusion?!

I see Pacific City Bank (another Korean bank) is offering the same rate on the same type of account -- but I can't find what its savings account rate is. Pacific City has no maximum on its account so might be better for those wanting a CD at more than $100,000.

Comment #2 by Anonymous posted on
on the rates page of this website,  I can not find any installment savings account,  Am I filtering it incorrectly.   I did all and christmas clubs and other come up but nothing for installment savings.  I have accounts with wishire and their service has been great.  was looking to see who else offered it, but have had a hard time finding anyone else that offers it nationally

Comment #4 by pearlbrown posted on
#2, sorry, I misunderstood your question.  I cannot even find Wilshire flagged as offering installment savings.  Ken, can you pls help?

Comment #3 by pearlbrown posted on
Click on "savings account" at the menu, then "installment savings".