bank rates

Earn Up To 3.82% With Rainbow Savings

If you can deal with all of the rules, you’ll have a tough time finding a better return than Wilshire State Bank is offering on its Rainbow Savings Plan.

If you can deal with all of the rules, you'll have a tough time finding a better return than Wilshire State Bank is offering on its Rainbow Savings Plan

This installment savings plan requires you to choose a goal of $1,000, $5,000, $10,000 or $20,000 and decide how much time you want to reach that goal, from 12 to 36 months.

You then deposit a fixed amount into the plan each month, and collect your goal after the final payment has been made. The amount you receive includes your deposits and the interest you’ve earned on that savings.

The interest rate depends on the length of the plan and how the payments are made.


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Comments (6)
1 Star2 Stars3 Stars4 Stars5 Stars (5 votes, average: 3.40 out of 5)
6 Existing Comments
  1. A.K. Leung said:
    on May 10th at 05:43 pm

    3.82% is the rate for 36 months. The rate for 12 months is 3.05% with automatic transfer from a Wilshire State bank account and 2.79% with transfer from an external bank account. However, these are only posted rates. Since you don’t deposit the whole amount into the account from day one, the final rate is in fact much lower. For the 3.05%, the actual rate is 1.6%. For the 2.79%, the actual rate is 1.3%. These are still pretty decent rates in today’s market.

  2. Denise M. said:
    on May 11th at 11:41 am

    You’re assuming that you have all of the money you’ll need for an entire year (or 2 or 3 years) of deposits sitting around somewhere, earning 0% while it waits to be pulled into the installment savings plan – and dragging down the overall return.

    That’s kind of a strange way to look at this kind of account.

    Most people who take advantage of this will make the mandatory deposits with money they’ve received in a recent paycheck. They don’t the entire $5,000 or $10,000 ready to invest right now.

  3. Bull Market said:
    on May 11th at 04:54 pm

    Yeah, AK. You’re looking at the chart that says you put $984 in to get $1,000 out and dividing that $16 return by the $984 principal to get a 1.6% return. But that assumes all $984 was in the account from day 1. And it isn’t. The true rate is 3.05%.

  4. A.K. Leung said:
    on May 12th at 11:21 am

    Installment savings accounts encourage people to save money on a regular basis. It is a good thing since American people are generally not in the habit of saving money. I have opened an installment savings account last year. I point out the final yield % (the actual interest you earn) just to help people understand the difference between regular CD account and installment savings account. Be reminded that interests are deposited by end of each quarter (March, June, Sept and Dec.) You will lose the quarterly interest if you close the account before the interest is deposited.

  5. Rebelo55 said:
    on May 17th at 03:45 pm

    I visited a Wilshire bank branch today and they have plunged the rates as of today (5/17/2010):

    With WSB Savings A/c:
    12Mo – 2.53% APY
    18Mo – 2.53%
    24Mo – 2.79%
    30Mo – 2.79%
    36Mo – 3.30%

    WitoOUT WSB savings a/c:
    12Mo – 2.28% APY
    18Mo – 2.28%
    24Mo – 2.53%
    30Mo – 2.53%
    36Mo – 3.05%


  6. DealMaven said:
    on May 17th at 04:27 pm

    Thanks for the update, Anu!

    They sure did plunge those rates…a little over half a percentage point in most cases.

    Unfortunately, this happens a lot. We find a great deal, publish it, the bank is flooded with more business than it can handle, and it lowers rates to make the offer less attractive.

    In other cases, a bank will reach the goal set for the offer more quickly than expected and cancel it altogether.

    As we’ve said before, if you see a good deal, jump on it. No one knows how long it will last.

    But in this case, even the new lower rates are still far better than average.