I recently attempted to open a CD account online at Indymac Bank. Why do I say attempted? Because my experience in doing so has been so drastically frustrating that it borders on unrealistic.

As I mentioned on January 22, I wanted to lock in a CD due to the emergency rate cut by the Fed. At the time, one of the best rates that I could find was a 7-month CD at 5.15% APY. So, I decided to lock that rate. Here is the timeframe of that process:

Jan. 21 (Day 1)

I completed the online application. To fund the account, one can choose between initiating an ACH transfer, sending in a check, or wiring in the money. I opted for an ACH transfer, funding the CD directly from my FNBO Direct savings account.

After I completed the application, I received an e-mail informing me that I would soon receive a Welcome Kit in the mail with a Signature Card to sign and return. Sounds good to me. So far, opening the CD has been a painless process.

Jan. 22 (Day 2)

I received an e-mail from a representative at Indymac, asking me to call them with regard to the status of my account. Curiously, I called them to see if there was a problem. After waiting on hold for about 30 minutes (ugh), I finally got a live person on the phone.

Here’s the scoop: they wanted to know the physical address of FNBO Direct (my funding source). Um, I explained that it is the online extension of a physical bank in Omaha, NE. The customer service representative had never heard of FNBO Direct. Apparently, the CSR is not a rate chaser.

Nevertheless, I found an address for FNBO Direct, gave it to the CSR, and was told that the account should be funded in 2-3 business days. This was a slight hurdle, but I am still pretty happy about the whole process.

The situation is about to get a lot worse….

Jan. 30 (Day 10)

Several days have passed, and I assume all is well with my new CD account at Indymac. Strangely enough, I remember that I was supposed to receive that Welcome Kit in the mail, but nothing has arrived. In fact, I have not received ANY notification from Indymac at all since I last spoke with them 8 days ago. Maybe I should check to see if there are any problems.

I start by logging into my FNBO Direct account. I see money that is not supposed to be there! There have been no withdrawals. Something is wrong.

I call Indymac again (and wait on hold again - ugh). Finally, I get a live person who informs me that they have NOT pulled the money from FNBO Direct. When I asked for a reason, this is what the CSR told me:

We need to know FNBO Direct’s physical address before we can initiate a transfer.

WHAT? Incredulously, I told her that I had already called and taken care of this problem EIGHT DAYS AGO! No effect. I might has well have been talking to a brick wall.

The stony CSR also told me that had until February 2nd to fund the account before my rate (5.15%) expired. Not wanting to bother with trying to get Indymac to actually create a working ACH transfer, I decided to fund the account by mail.

I immediately initiated a transfer from FNBO to my checking account. Next, I drove to the post office and paid to overnight a check to Indymac Bank. It cost me $16 to mail the check, so now I’m already eating into my first month’s interest on the CD. Ugh.

February 1 (Day 12)

Using the USPS tracking service, I verified that my check was signed for and delivered to Indymac, one full day before the cutoff date. Yay! Finally, perhaps this frustrating ordeal is coming to an end.

Wrong again.

February 6 (Day 17)

This morning I logged into my checking account and noticed that the check to Indymac has not yet been withdrawn. HUH?

Immediately, I called Indymac (again!) and spoke to an apologetic gentleman named Carlos, who informed me that they did NOT receive my check! This is getting really disgusting.

Recognizing the severity of the situation, he decided to connect me to a supervisor. To add insult to injury, the phone system mechanically informed me that no supervisor was available and HUNG UP ON ME! Aargh!

Furiously, I called Indymac again (ugh!). Once I connected to a CSR, I told him what had just happened, and he assured me he would try to handle everything without connecting me to a non-existent supervisor.

I briefed him on the entire situation, and he compiled a report for me. I even gave him the USPS tracking number for the check, and he verified that it was delivered. They just don’t know where it is. Um, this doesn’t exactly instill confidence in their bank.

To make a long story short, he informed me that they should honor the original rate once they figure out what happened to the check. He also told me that he would send another Welcome Kit in the mail.

Conclusions

I hope this ordeal is now over. Quite simply, everything that could possibly go wrong HAS gone wrong. What should have been a simple account opening procedure has turned into a drama of epic proportion.

Ok, maybe that’s a bit of an exaggeration, but this last statement is not:

I would rather face an army of ankle-biting gophers than open another CD with Indymac Bank!

One-word summary of the entire experience: Ugh!

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