Is a CD with Indymac Bank still OK right now?

Question

Lured by a 4.25 APY, I just opened a CD with Indymac Bank, only to recently learn that they are almost bankrupt! I'm trying to confirm on their website that the CD is insured, but it seems unclear. They are a member of FDIC, does that mean it is automatically insured? What should I do?

Answer 1

When a bank fails, how safe is my c.d. funds.

Answer 2

As everyone above said, the FDIC seized them and now they are under federal control.  Below is the most pertinent information you need to know along with contact information.  You may want to consider a Federal Credit Union from here on out.  They still remain safer because they are owned by the members. But of course, just how safe is anything right now?  Sorry, this is truly a horrible situation.

Bair said that the FDIC will try to sell IndyMac as a complete entity within 90 days.

When a bank shuts down, traditional bank accounts are insured to at least $100,000. Some accounts such as annuities and mutual funds are not insured at all. Individual Retirement Account funds are insured to $250,000.

Customers with uninsured deposits will get at least half that money back, and they could get more back, depending on what the FDIC gets when it sells the bank, said Bair.

IndyMac customers will have their funds transferred to a new entity - IndyMac Federal FSB - controlled by the FDIC. They will have uninterrupted customer service and access to their funds by ATM, debit cards and checks.

However, customers will have no access to online and phone banking services this weekend, according to the FDIC. Service will resume on Monday. Loan customers were advised to continue making loan payments as usual.

For additional information, the FDIC has established a toll-free number for customers of IndyMac Federal Bank, FSB. The toll-free number is 1-866-806-5919 and will operate today from 3:00 p.m. to 9:00 p.m. (PDT), and then daily from 8:00 a.m. to 8:00 p.m. thereafter, except Sunday, July 13, when the hours will be 8:00 a.m. to 6:00 p.m. Customers also may visit the FDIC's Web site at http://www.fdic.gov/bank/individual/fail... for further information

Answer 3

The FDIC seized the bank on F 07-11-2008 (eve) after the market was closed and everyone was home.

Reuters reports, this is the "2nd biggest bank failure in US history."



If your under $100K in total deposits, the FDIC will be contacting you.

The FDIC has ONLY $53 billion insurance fund. That's a heck of a lot less capital than I thought.

The FDIC estimates they will have to shell out "between $4 billion and $8 billion" to make qualifying depositors whole.

http://www.reuters.com/article/gc06/idUS...

There is about 4% of Indymac depositors that will not be eligible for FDIC insurance.

http://answers.yahoo.com/question/index;...

FYI: In the future, when you see a lender offering rates higher than the average bank, it means what?......

anyone ...

anyone ...

bank is strapped for cash, and they are looking for you to bail them out.

Answer 4

cds, savings , money market deposit up to 100k, per account is insured

ur money is safe.

Answer 5

your principle deposit, to $100k, is federally insured. their interest rate is not. although, your account constitutes a legally binding contract, so you have reasonable assurance that youd receive the interest.