Internet Custom Term CD @ IndyMac 5.41% APR = 5.55% APY for 5 Months

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Product Features and Requirements
Minimum to open is $5,000 (Internet Only).
Terms are from 90 days to 5 years.
For customized terms, other than those listed above, please call our Customer Contact Center.

Interest is compounded daily and paid or reinvested into the account monthly or at maturity. The interest rate depends on the term of the CD.
A penalty will be assessed for early withdrawal.
For your convenience, your CD renews automatically for the same term at the current rate at that time.

Did some research on who they are...
About Us

Hmmm... interest rate goes up after Indymac CEO talks about using depositors funds to deal with short term liquidity issues. Meanwhile many of the competitors are going out of business. I would personally stay away from this one.

ThursdaysChild said: How about changing the title to show that it is 5.41% APR = 5.55% APY.

They're advertising this rate in this morning's paper (Orange County, CA) so perhaps the rate will be available for a while.
Yep, just opened one this past Saturday.

Also, they have a Liquid CD, 7-day lock-in, at 5.40%

This is what the CD rate thread is for.

01LX said: dudetheobscure said: And don't overlook the 1st Rate Money Market @ 5.75% APY for $25K and over. If they're buying funds these days to deal with a liquidity crunch, why not sell them your money?
D'oh, I messed up pretty narly. I just invested $9k of BT funds @ 5.55%/5-mth. And last Fri, I invested $20k in the liq CD/5.4%, good thing it's only for 7 days.

Also, another good thing is that I have enough to meet the 1st Rate MM 5.75% acct.

Although after 2nd thoughts, the 5.75% can change next week while the CD rates are locked-in. Indy needs the money all for those subprime defaults, since they are a major player in the mortgage business.

With CD rates dropping and the 5.75% sure to go, the above-market 5.55% 5-month looks decent to me.

INDYMAC
From Yahoo Finance:

Fitch Ratings has downgraded..... <snipped> .......
Additionally, Fitch has placed Indymac Bancorporation Inc. (IMB) on Rating Watch Negative.
The rating actions also affect all related subsidiaries of the three mortgage companies.
A detailed list of affected ratings follows at the end of this release.
Fitch will provide more detailed commentaries on the each of the affected entities shortly.

I'd say unless you plan on investing > $100K into IMB, why would you care? FDIC's got you back. Even if you are investing in more than $100K, you can open a single account for you ($100K) and a joint account for the you and your wife/SO ($200K) for $300K of FDIC insured deposits.

I'm as scared about the mortgage industry as the next guy, but I'd say we can count on FDIC to get us $ if the bank goes poof, right?

xxjt said: Hmmm... interest rate goes up after Indymac CEO talks about using depositors funds to deal with short term liquidity issues. Meanwhile many of the competitors are going out of business. I would personally stay away from this one.

Indymac has hired employees, some from other lenders that have failed. It was in todays' WSJ.
Reason: They want to be sure to have control on the loan origination (and hence scrub applicants applications) instead of using broker.

Anyway, as the above poster said, its FDIC problem if anyones insured CD is affected if indymac fails.

IndyMac Bancorp's CEO Michael Perry announced today he was recommending a 50% decrease in the company's dividend, cutting 10% of its workforce, and forecasting the company's first loss in eight years. Assuming the board approves the dividend decrease, the new dividend yield will be about 5%.Perry noted he believes the company will sustain this new level despite the housing crisis being "forecasted to worsen before it gets better." Perry anticipates cutting 1,000 employees in the coming months, but he will keep "prudently rebuilding our mortgage franchise which has been damaged as a result of the illiquidity in the secondary markets." The big news was the drastic lowering of the company's third quarter forecast and Perry's future outlook. Eight analyst surveyed by Bloomberg had the company earning 30 cents/share. However, IndyMac expects to earn in the "range of breakeven to a loss of $0.50 per share," caused by "spread widening and a continued high level of credit costs." Perry did provide some hope for shareholders by saying he did expect IndyMac to be "solidly profitable in both Q4-07 and in 2008." Despite the shaky news, investors liked Perry's post third quarter outlook as IndyMac traded 3.6% higher to $22.44 in midday trading on Friday.

I just signed up for a savings and CD account. However, it only offered deposit via wire transfer, transfer from other IndyMac account, or a check. Is there no ACH transfer option?

Yes it is a pain. I just did the 4 month 5.75% CD, Also wanted to do a savings at the same time. But the savings account they list while opening the CD is the 5% one. So I did just the CD and set to ACH from a high yielding checking account.

largeeyes said: So where does the money go when the term expires? Back to your checking? I'm curious if you get your interest all days $ is in transit from either your checking or the cd.
No, They wont transfer back to your funding account. I will either pay the $30 to have it wired transfered or open an IndyMac money market account. Then you could have the matured CD put there and either ACH it out, Or even better is if you open one of the accounts that has check writing. No loss of interest

micecali said: so, can we still ACH from the saving FNBO to IndyMac?
thank you,
You should be able to. the IndyMac site says fund from your checking (which I did) but as long as you have your FNBO routing and account number it should get done

Also within a couple minutes I got this email

Thank you for choosing Indymac Bank. We appreciate your business.

We have processed your application for a new account. Your tracking number is: IMB-xxxxxx.

We will mail you a New Account kit that will include Signature Card(s) and Account Disclosures (with a postage paid envelope) for you to review and sign. You will receive this within the next 7-10 business days. It's important to sign and return the signature card to allow you to transact on your account in the future.

Your rate is locked in for a maximum of 12 calendar days from today. If you choose to fund your new IMB account by check or wire transfer, please follow the instructions listed below. You do not need to wait to receive your new account kit to fund your account. To ensure your account is funded before your rate lock expires and to start earning interest immediately, use one of the options below to fund your account immediately.

If funding by check. Send your check to:

Indymac Bank
Consumer Banking - 8th Floor
P O Box 7056
Pasadena CA 91109-9699

Please make the check payable to yourself (first and last name), and include the IMB tracking number: IMB-xxxxxx. Endorse the back of the check "for deposit only" and sign your name.

If funding by wire transfer. The institution originating the wire transfer will need the following information:

155 N. Lake Avenue
Pasadena CA 91101
Routing #: 322270288

Please include your first and last name and tracking number, xxxxx on the wire transfer instructions.

If you requested electronic funds transfer from another institution, we will use the bank information you provided during the application process. To complete the request, please sign the form titled Authorization Agreement for Direct Deposit Payment included in your New Account kit. Return this form in the postage paid envelope together with either a copy of a voided check or a copy of your account statement.
Edit by Moderator: Removed Personal Information

scott1961 said: micecali said: so, can we still ACH from the saving FNBO to IndyMac?
thank you,
You should be able to. the IndyMac site says fund from your checking (which I did) but as long as you have your FNBO routing and account number it should get done

I did this exactly and it worked, although it took a while. Opened the account on 9/04 and FNBO was deducted on 9/13 and the money showed up in the CD on 9/14.

scott1961 said:
No, They wont transfer back to your funding account. I will either pay the $30 to have it wired transfered or open an IndyMac money market account. Then you could have the matured CD put there and either ACH it out, Or even better is if you open one of the accounts that has check writing. No loss of interest

Just opened a checking and CD. Do you know if I can transfer the money into checking after maturity? That way I can pull it from HYS account?

jack07002 said: with all this credit crunch and liquity cash problems to fund loans for some banks,some might not even lower their rates out of fear of losing deposits..especially banks like Countrywide and Indymac..I would be surprised if they did lower rates.

Jack07002 has been surprised.
Check the CD thread for details.

Applied for the 4 month 5.75% on 9/20. Say's rate is locked for 12 calendar days, So must be opened by 10/1. Funded with ACH transfer. From reading some of these threads it seems to take about 2 weeks to get opened. Wonder if I will have any problems?

HoMeZ said: How does one pull the money out of this CD after the 4 months are up? Does one have to pay money to wire it or can one ACH it into a checking account?
Indymac charges $30 to wire out. You also have the option of requesting a check be snail mailed to you at no charge or pay $18 for overnight delivery of the check. To ACH out at maturity, you’ll have to transfer the funds from the CD to another Indymac account, then ACH from that account.

While IndyMac is moving at a snails pace, Countrywide is very fast. Did my Countrywide online application the same day (9/20) as IndyMac. Just got home from work and had a Fedx overnight package. Was the opening kit for Countrywide, Even had a postage paid return mailer.

it was 3/21...I corrected the error in my previous post. thanks for pointing that out. Are you having any issues transfering money with Indymac?