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3.30% 4-Month CD & 3.00% Online Savings Account at Danvers Bank in MA

Tuesday, February 17, 2009 - 6:52 AM CT by Ken - Bank Deals Guy

View current rates for Danvers Bank

Update 2/25/10: The 4-month CD rate has fallen to 1.25% APY and the DBK Online Savings Account rate has fallen to 1.25% APY. Refer to the bottom of the post for the rate history.

Danvers Bank is offering two competitive online accounts: a 3.30% APY 4-month CD and a 3.00% APY savings account. Minimum deposit is $500 for the CD and only $1 for the savings account. These rates are listed in the bank's rate table as of 2/17/09.

A reader reported being told these accounts are available to all. I've sent the bank an email for more information. Update 2/18/09: Here's the reply I received from the bank: "Please be advised that you do not need to be a Massachusetts resident to establish an online account with Danversbank."

I noticed in the online application located at the bank's reward checking page, these accounts can be selected. The application is provided by Andera which is a common service used for online bank applications. Funding can be done via ACH transfers from your existing savings or checking account at another bank. Update 2/18/09: I received the following information from the bank regarding electronic funding of the accounts:

Initial funding for each of these accounts is limited to $10,000.00 by credit card and $25,000.00 by ACH (Automated Clearing House). Additional deposits are welcome anytime after the account is funded for the online savings and rewards checking products. However; additional deposits may only be made upon maturity for the certificate of deposit accounts.


Update 3/10/09: A reader reported that the savings account lacks an electronic funds transfer capability. The bank has told him that they're working on it. He's able to transfer funds by pushing and pulling from another financial institution.

I first reported on Danvers Bank's reward checking account in April 2007 when it had a top rate of 6.01% APY for balances up to $100K. Last year this was lowered to 4.01% APY for balances up to $25K, and this rate is still available.

Branches are located in several Massachusetts cities including Boston, Danvers, Salem and Wilmington.

The bank has been around since 1850 and has been FDIC insured since 1985 (Certificate # 90185).

Thanks to the reader Scott who mentioned these rates in the Daily News and Deals Page.

Rate History:

02/24/10: 4-mo CD: 1.25% APY, OSA: 1.35% APY

09/04/09: 4-mo CD: 1.75% APY, OSA: 1.50% APY
07/23/09: 4-mo CD: 2.00% APY, OSA: 1.65% APY
04/16/09: 4-mo CD: 2.50% APY, OSA: 2.05% APY
03/20/09: 4-mo CD: 3.00% APY, OSA: 2.50% APY
02/17/09: 4-mo CD: 3.30% APY, OSA: 3.00% APY




 
 
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Anonymous - #1, Tuesday, February 17, 2009 - 9:14 AM CT

Opened one today. Site is a little slow through the application process so it takes about 15-20 minutes. At the end you need to print out the signature card and mail it. We will see how quickly I get the trial deposits. 5 stars on Bauer.


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JCE - #2, Tuesday, February 17, 2009 - 10:19 AM CT

The 4 Month CD at 3.3% APY sounds like a pretty good deal, a decent interest rate without locking up money for too long. I went to the website to check it out, there is the following message posted: Please note that we are currently having some technical issues with funding Online Account Opening. We apologize for this inconvenience.

The website is extremely slow, maybe they are being overwhelmed by too many people trying to open accounts.


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scott - #3, Wednesday, February 18, 2009 - 8:11 AM CT

While the ACH limit is $25k they do allow you to open multiple $25k CD's. The 3% savings has been offered for awhile so does not seem like a teaser rate. I like Danvers, I opened the rewards account when it was first offered and they grandfathered in all those accounts with the $100k Max


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JCE - #4, Wednesday, February 18, 2009 - 11:51 AM CT

I just opened a 4 Month CD at 3.30% APY. Note: to open a CD or any other online account you have to click on the link to open Free Rewards Checking, then you get the option to choose which account you actually want to open (not the greatest design). The technical issues message I noted in my previous post was gone but the website was still very slow. One thing I don't particulary care for is you have to print, sign and mail to them a sheet that has your name, address, Social Security #, account #, drivers license # and mothers maiden name. Basically everything someone needs for identity theft. I called customer service to voice my concerns, someone answered within one minute, she could not give a reason why all the info had to be on the sheet, she said she would check with her supervisor and call me back. Within 15 minutes I received a call back, she said it is required to have all the information on the signature sheet, she suggested I send it via certified mail if I wasn't comfortable sending it via regular mail.


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Anonymous - #5, Wednesday, February 18, 2009 - 5:39 PM CT

I am leery about sending out all that information to any business. IGOBANKING.COM said that you have to send them a copy of two IDs (your license, a credit card) and also a copy of a utility bill in order to open an account by mail. Just what someone needs to perform identity theft.


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