bank rates

IndyMac Bank 5.40% 4-Month CD Rate

Indymac Bank is running a Internet special for their 5.40% APY 4-month CD account. The account is an Internet-only deal, and requires a $5000 minimum deposit to open.

Indymac Bank is currently the leader for short-term CD rates according our CD rate tracker.


Many readers have been emailing me asking me for advice on what to do regarding the latest interest rate dips. The Federal Reserve cut interest rates by 0.50%, forcing many banks to cut their rates as well. Right now, it is uncertain whether the Fed will continue to drop rates at their next meeting on October 30, 2007. According to Money-Rates, there is a 60% chance that rates will continue to be cut, and 0% chance that rates will be increased.

Since it is more likely than not that rates will continue to fall, a safe play would be to start locking in rates by laddering CD accounts.

Suppose you have $100,000 in cash and you want to lock in the current rates to hedge against future cuts. You would divvy up that cash into chunks and open CD accounts with staggered maturity dates. Ie, $10k in a 4-mo CD, $10k in a 5-mo CD, $10k in a 1-yr CD, and so on. This way you don’t risk tying up all of your funds all at once, but still lock in favorable rates. Click here to learn more about Indymac Bank’s 5.40% APY 4-month CD.

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Comments (8)
1 Star2 Stars3 Stars4 Stars5 Stars (24 votes, average: 3.92 out of 5)
8 Existing Comments
  1. Tiger Woods said:
    on October 2nd at 02:12 am

    Indymac also has a 5.60% APY account that is liquid. It is called first rate money market, but you need $25k to open an account.

  2. Bankaholic said:
    on October 2nd at 02:17 am

    Yes, they have many banking products, depending on suits your needs.

  3. Thai said:
    on October 3rd at 04:18 pm

    IndyMac also have a 7 day Liquid CD paying 5.40% APY which you can deposit to or withdrawl from once each week.

    The 4 month CD referred to in article above was paying 5.75% APY before the Fed;s reduced their rates last week.

  4. said:
    on October 3rd at 05:03 pm

    Nice find, I never heard of a 7day liquid CD before, but the 5.40 rate sur.e is nice

  5. Bill said:
    on October 18th at 02:04 pm

    IndyMack has a 3 month CD paying 5.5%, 5.65% APY. I just opened it this week…best I could find

  6. said:
    on October 19th at 03:22 am

    Great point, Indymac Bank launched a promo this last Monday, a 5.65% APY 3-Month CD%.

  7. starburst said:
    on October 19th at 04:30 am

    what’s the best way to open this 5.65%, 3-month account if I already have an existing CD account that luckily expires this week?

  8. Venkata said:
    on November 6th at 12:34 am


    Please do not bank with this bank they are very very bad. The customer service sucks. I have faxed something couple of times and they never receive it.