Rainbow (Installment) Savings Account Rate Update

I was in the Garden Grove branch today, and these were the Rainbow Savings Account rates.

$ 100K maximum per customer. In my experience, they enforced a similar restriction on other types of accounts (Flex CD, $ 95K max).  Rates without auto-transer from a Wilshire account are ~ 0.25% lower.  These rates are from 0.50% (12 month) to 0.65% (36 month) higher than the corresponding rates at Hanmi Bank.

With auto-transfer from a Wilshire account, the rate/APY is:

12 Month - 2.00%/2.02%

18 Month - 2.00%/2.02%

24 Month - 2.25%/2.28%

30 Month - 2.25%/2.28%

36 Month - 2.75%/2.79%

If you are making a comparison to a conventional CD of the same duration, you are approximately correct.

Ken created an example spreadsheet to calculate the effective interest rate, at the link below:

http://www.depositaccounts.com/blog/how-to-maximize-return-of-installment.html

If you look at the installment savings account as a series of discrete investments, each earns the stated rate for the fraction of the term it is on deposit.