6.00% 15-Month CD at a Massachusetts Bank (East Boston Savings)

East Boston Savings Bank is offering a 6.00% APY 15-Month certificate of deposit. The minimum deposit is $5K. This special is only for personal accounts and requires that you have a money market account with a $2.5K balance and new or existing checking or savings account.

The bank has a free checking account so that requirement isn't too bad. However, the $2.5K in a money market account has a significant effect on the total return since the rate of the money market account is only 2.78% APY for balances between $2.5K and $10K. Consequently, this CD special isn't that great for small CD balances. For example, If you deposit $20K into the CD and $2.5K into the money market account and assuming the MMA remains at 2.78%, the average return on the $22.5K balance would only be about 5.64%. The larger the CD balance, the closer the average gets to 6%. For a $100K CD balance, the average return of the 102.5K would be about 5.92%.

The money market account (and thus this CD special) is only available to Massachusetts residents.

The bank has branches in East Boston, Lynnfield, Melrose, Peabody, Revere, Saugus and Winthrop.

East Boston Savings Bank has been FDIC insured since 1991. The bank is rated 4 out of 5 stars by Bankrate.com (sound).