IndyMac Federal Bank Restructuring Loans and Offering High Rates on Deposits

IndyMac Federal Bank is a new bank created when the FDIC closed the old IndyMac Bank. The large bank failure on July 11th, 2008 of IndyMac Bank was one of the first warning signs of the financial chaos to come later in the summer. Now that the federal government is running the bank some progress is being made on their large collection of troubled mortgages. The government has the ability to restructure troubled loans to more acceptable terms and prevent more foreclosures and losses. While IndyMac Federal Bank works through the restructuring of their mortgage portfolio they continue to offer above-market deposit rates which are FDIC-insured. These rates include:

Money Market Accounts - 3.75% APY on balances over $50,000

7-month Online CD Special - 4.05% APY with a minimum opening deposit of $5,000

Ultimnate Checking Account - 2.00% APY on balances over $25,000

Some depositors have been hesitant to deposit money at the new federal bank, but analysts have been quick to point out that regulators are unlikely to close their own bank anytime soon.