Update 7/03/08: Indymac rates are jumping around. CD rates are down: 4.10% APY 1-year and 4.40% APY 3-year. There are new higher rates for large balances on the E-Money Market Account (up to 4% APY for $75K+).
Update 7/01/08: Indymac Bank just came out with some new CD specials. The 12-month CD is now up to 4.35% APY. There's also a 5.00% APY 36-month CD. Below if the full list of special CD rates and terms:
Indymac Bank just raised the yield on its special 12-month online CD from 4.25% to 4.30% APY. The 6-month special CD yield remains the same at 4.00% APY. The minimum deposit is $5,000, and new money is required.
Please refer to my April Indymac post for more details about the CDs and my experience opening and closing an Indymac CD.
Indymac in the News
This Pasadena Star-News article which is titled "IndyMac appears close to collapse", may explain the lastest rate increases. As this recent LA Times article describes, depositors were lining up at some of its San Gabriel Valley branches to pull their money. Indymac stock closed today at 61 cents per share.
Some of the latest concerns were caused by a letter sent by Senator Charles Schumer to the FDIC and other bank regulators expressing concern about Indymac's financial deterioration. Indymac released a response to his letter on its corporate blog.
Schumer blames brokered deposits as part of the problem. He had made similar claims a month ago in regards to the failed bank ANB Financial. As I pointed out in this post, brokered deposits shouldn't be blamed. Indymac's corporate blog also makes this case.
The corporate blog post states that over 96% of their $19 billion deposits are FDIC insured. Indymac does admit that the letter and the related press coverage did result in a mini bank run in which about $100 million of the $19 billion deposits were withdrawn. So I guess we can thank Schumer for this latest CD rate increase.
As with any bank, make sure to stay below the FDIC limits (see my FDIC post). To review Indymac's financial details, refer to this FDIC page.
Thanks to the reader who emailed me news of this latest rate increase.
Other High Certificate of Deposit Rates
If you want the high CD rate with less worries about a bank failure, you can get a CD rate that's close at Wachovia. Please refer to my Wachovia post for details about Wachovia's new Featured CDs which include a 4% APY 7-month CD, a 4.25% APY 12-month CD and a 5.00% APY 36-month CD.
For more high CD rates, please refer to my Nationwide CD rate summary.