One West Bank is the new name for Indymac Federal Bank, which was recently sold to a consortium of investors. The consortium is headed by Steven Mnuchin of Dune Capital Management in New York and also includes J. Christopher Flowers, who has specialized in distressed bank purchases, and hedge fund operators George Soros and John Paulson.
The investors have injected $1.5 billion into the bank on top of the $10.5 billion paid by the FDIC. That raises the banks tangible common equity to over 9% versus an industry average of 4-6% range. The government will also share in future loan losses.
From an online standpoint One West is very similar to the old Indymac, which was known for offering competitive rates. The website is basically a rebranded Indymac site and the online accounting opening process is the same. Applications are taken online. Once the application is submitted the rate locks for CDs. At the end of the application, you'll be able to initiate an ACH request to fund the account. According to the CSR, it takes only 1 business day to transfer the funds. A signature card is sent out and it must be returned at some point but the account can be opened and funded before this is done. Joint accounts are fully supported online.
The bank also seems to be committed to keeping competitive rates is as of today (June 12) is offering a the top 18-month CD rate. They are also offering a 12-month IRA CD paying 2.25% APY.
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Indymac Becomes Rate Leader on 6 Month and 1 Year CDs by BestCash Admin - Jun 20, 2008
Amtrust 6-month CD at 4.15% APY by BankMan - Sep 12, 2008
ING Direct Raises Rate on 18 Month CD to 4.50% APY by BankMan - Sep 18, 2008
Washington Mutual 1 Year CD 4.50% APY, 8 Month 4.25% APY by BankMan - Aug 13, 2008
ING Raises Rates on CDs, One Year at 4% APY by BankMan - Aug 27, 2008.
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