IndyMac Bank is offering an internet special 5.75% APY CD. There is a small minimum requirement on this CD is $5000 deposit. The term on this Certificate of Deposit is only 4 month but IndyMac Bank provides a feature that will renew your CD automatically keeping the same rate when the term is up. This means it can be completely hassle free, just drop it off in the CD and you can forget about it.

Also remember that this highest Certificate of Deposit interest will compound daily and will be reinvested monthly or at maturity. This however raises many doubt as to whether the interest rate will continue to pass on after the 4 month IndyMac Bank automatic renew. I called IndyMac Bank to confirm and they said because the CD is termed to be only 4 month. The interest rate stops precisely when 4 month is up; if the interest rate would carry on to the automatic renewed months, then this wouldn’t be a 4 month CD. With such a great CD rate, there is of course a penalty for early withdrawal. As far as what the penalty is, I’m not going to go into that because this is a very short termed Certificate of Deposit.

Another thing to keep in mind is that this is an internet special only. The only reason IndyMac Bank can keep provide such a great rate is mainly because they save the money of running a brick and mortar. They can carry their savings onto the CD interest rates they give you. If you have any questions regarding this Certificate of Deposit, please check out the IndyMac Homepage.