Dedicated to Deposits: Deals, Data, and Discussion

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

POSTED ON BY

Danversbank

Update 5/18/10: The DBK Online Savings account rate has fallen to 1.00% 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:

05/18/10: 4-mo CD: 1.00% APY, OSA: 1.00% APY

04/08/10: 4-mo CD; 1.25% APY, OSA: 1.35% APY
02/24/10: 4-mo CD: 1.25% 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


  Tags: Massachusetts, Danversbank, CD rates, savings account

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Comments
34 Comments.
Comment #1 by Anonymous posted on
Anonymous
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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Comment #2 by JCE (anonymous) posted on
JCE
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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Comment #3 by scott (anonymous) posted on
scott
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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Comment #4 by JCE (anonymous) posted on
JCE
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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Comment #5 by Anonymous posted on
Anonymous
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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Comment #6 by JCE (anonymous) posted on
JCE
At least they didn't request a semen sample.

1
Comment #7 by Anonymous posted on
Anonymous
Actually, giving them a semen sample would be preferable to giving them my credit card number. As long as they don't use it to do IVF and dump a kid on me, I am fine with that.

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Comment #8 by JCE (anonymous) posted on
JCE
In addition to the 4 Month CD I just opened I am thinking about opening an online savings account (current APY is 3.00%). It's not the highest rate available but there is something interesting you can do which is fund the account (up to $10,000) with a credit card. If you have a card that has rewards such as 1% cash back you can earn up to $100 back. Just make sure you have a high enough credit limit and pay the bill in full. You can then put that $100 into the savings account for more compounding. I haven't heard of other banks allowing initial funding via credit card and I have never done it before. Does anyone have any experience with this?

1
Comment #9 by Banking Guy (anonymous) posted on
Banking Guy
You have to be careful that the credit card company doesn't consider it a cash advance rather than a purchase. If they treat it as a cash advance, you'll be charge interest and fees.

1
Comment #10 by scott (anonymous) posted on
scott
Just went into branch to fund my online savings account but did what I think is even a better deal. 8 month 3.25% CD. I don't see banks raising rates soon and most have been dropping. Very local deal since you must go into the Salem MA branch to open

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Comment #11 by Anonymous posted on
Anonymous
just spoke to CSR, their CC funding systems is broken, no ETA.
guess i 'll have to use ACH.

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Comment #12 by Jack (anonymous) posted on
Jack
I applied for the 3.30% CD online, the application was approved and a ACH for $25,000 for another saving account was done, after receiving a verification of the account and after the $25K was withdrawn from my other account, I received an email that notified me that "For security and verification purposes all applicants are screened through identity verification software. During the process it appears as though there was a
communication error and the process did not successfully complete.
As a result we are unable to establish an online account using this application. Please attempt the process again."

Well, now they have my $25K that they promised to return in about a week and they asked me to reopen the account and transfer some more money to them.

Be careful opening account with this bank and if you want to open one, just start with the minimum of $500 and only when that cleared you can add to it.

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Comment #13 by Anonymous posted on
Anonymous
Hard or soft pull?

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Comment #14 by Anonymous posted on
Anonymous
soft pull...
Danversbank's customer service is both weird and nasty. They get very impatient quickly. I would stay away from such a bank unless one wants the 3% real bad to tolerate such unkind treatment.

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Comment #15 by Anonymous posted on
Anonymous
danversbank's DIF insurance make it save to go over the fdic limit on a single account?
anyone know how save dif insurance is?

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Comment #16 by Banking Guy (anonymous) posted on
Banking Guy
It should be noted that DIF is private insurance. I discussed this a little in my post on ASI insurance for credit unions at the end of this post. Also note the first comment in that post. I haven't researched the issues the commenter mentioned.

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Comment #17 by JCE (anonymous) posted on
JCE
I recently opened an online savings account with Danversbank, I was hoping to fund it via credit card so I could earn 1% back in rewards but there was a message on the website that credit card funding was not available. I used ACH to fund the account, I didn't have any problems setting up the account and the website was working faster than in the past. I did notice that there was a few days gap from when my money was withdrawn from my linked account until it showed up online in the Danversbank account. I'm not sure if I will receive interest for those few days but I'm not really going to worry about it, overall I am satisfied with Danversbank so far.

1
Comment #18 by Anonymous posted on
Anonymous
The website and the bank and the customer service are all weird... and more or less clueless.

I open account on Monday & select to fund with ACH withdraw ($10) from my checking. They make test deposits which have to be verified. These show up in my checking account on Tuesday and I verify the deposits with the email link.

Danversbank is not clear on how to setup online banking as the opening process is handled by 3rd party (Andera) and initial deposit verification is by 3rd-party as well. But, I assumed need to sign up separately for online banking on the Danversbank website - and that worked. The 3rd-party verification also worked and I receive a message that the account will be funded.

So, I then go online to my Provident Bank account to link the new Danversbank account on Tuesday. The ABA# for Danversbank is on their website(211371162).

On Wednesday, my Danversbank account online shows 2 pending deposits AND 2 pending withdraws from Provident Bank. (Provident, as noted on this site makes test deposits AND withdraws the same day when setting up linked accounts). I verify the deposits on Provident site successfully and schedule a transfer from Provident into Danversbank on the Provident site. The initial $10 funding does not show up on Danversbank.

On Thursday, the Danversbank website still doesn't have the $10 initial funding, and the Provident Bank withdraws are MISSING. The $5k transfer is pending and my "available" balance is $5001. The 2 Provident test deposits which showed as pending the day before show still show pending as if they did not clear.

On Friday, the $10 initial funding deposit shows as pending. The funds were debited from the checking account on Thursday. The $5000 deposit shows cleared with Thursday date. The 2 Provident test deposits - made at the same time - now have different transaction dates - 1 is Wednesday, the other Thursday. The withdraws Provident made do not show at all and the "available" balance reflects all the funds including today's pending transaction.

On Thursday I call Danversbank customer service because if I click the "Transfers" menu item on their website, I receive a mostly blank error page without any links and am thrown out of my banking session. I'm told that's because there is no way to transfer money with their "online" banking system - you can use the ACH system of OTHER banks to push or pull funds from the other banks online system, or mail deposits, or use the ATM card that will be mailed to you (which I elected not to get when opening the account). Apparently, the "transfers" item on Danversbank website is to transfer among Danversbank accounts you might have, and if you don't have more than one, the error behavior apparently is normal, by design, and they see nothing wrong with the weird behavior of the website.

On Friday, I call Danversbank customer service which is means talking with a clueless person who does not listen to what I am saying. I am assured that the "available" balance is "available" and they can see no attempt by Provident to withdraw the small test deposits - I should talk to Provident about that.
WARNING: You probably need to capture screenshots of this online banking system to document things: they will change transaction dates, and transactions may disappear..... Now, my theory is that the Provident withdraws failed because the initial $10 funding took so long and the Provident deposits/withdraws were the first transactions on the account - so they accepted the 2 sub-$1 deposits, but not the withdraws. Probably would not have happened if the account had an available balance.... But still, when an ACH deposit comes in, they show it as "available" funds even when the transaction is uncleared*/pending/today. And today's pending transactions may not clear and become tomorrow's pending transactions.... very very weird....

1
Comment #19 by Anonymous posted on
Anonymous
To Anonymous, at 12:48 PM, March 13, 2009: Sorry, I only did a quick skim of your post. But I wonder if any problem with Provident test withdrawals could be due to the fact that Danvers didn't have your signed signature card yet. Many/most banks won't allow any withdrawals -- even small verification withdrawals -- until they have received a signature card from you.

1
Comment #20 by JCE (anonymous) posted on
JCE
I had no problem setting up an online account. From what I can see the problem anonymous had is he tried to link his Danversbank account from his Provident account before his Danversbank account was even verified and funded. That would foul up the works with any bank. Once you link your bank from Danversbank there is no need to go to your bank and link Danversbank to it again from the other side. You can "pull" or "push" money via ACH from Danversbank. As I said in my previous post it takes several days for the account to be fully set up and funded, you cannot initiate any other transactions during that time.

1
Comment #21 by Anonymous posted on
Anonymous
JCE said: You can "pull" or "push" money via ACH from Danversbank... Except for the initial ACH funding, DBK Online Savings does not have this capability.

1
Comment #22 by JCE (anonymous) posted on
JCE
My mistake, Danversbank can only "pull" for the initial funding via ACH. It was my understanding that you can "push" money to linked accounts using Online Bill Pay, I haven't tried it yet. Can anyone confirm?

1
Comment #23 by Anonymous posted on
Anonymous
Yes, you can sign up for Free billpay, and seemingly push and pull funds. But within 24hrs of signing up, you will get an email:

Thank you for your interest in Free Bill Pay. Unfortunately, your enrollment has been declined and any payments you may have scheduled have been canceled. Please contact DANVERSBANK at 800-771-8200 OPT 1 for additional information regarding this matter.

Respectfully,

Danversbank


And, when you call them you will be told you are denied because you signed up with a savings account - you can only sign up for billpay with a checking account.

Just another example of the amateur nature of their online systems.....

1
Comment #24 by JCE (anonymous) posted on
JCE
Rates dropped.
Online savings is now 2.5% APY
4 Month online CD is now 3.0% APY

1
Comment #25 by Anonymous posted on
Anonymous
Not sure if this was covered above as I did not read all the comments, but when I opened a CD with them I funded it from my Danvers online savings account. Apparently their system is from the stone age because it sent me verification deposits to my savings account! Now my CD money is not in my online savings account, but it is not credited to my CD yet either.

I would think that their system chould recognize an interbank transfer, but it doesn't. Overall it is just a slow process with them.

1
Comment #26 by Anonymous posted on
Anonymous
I also opened an online CD. The process was a bit weird, but in the end, things ended up being done in a generally customer-friendly way.

Specifically, I went through the application on a Tuesday night. The verification deposits were in my account on Thursday. When I confirmed the verification deposits, the actual account was created, but was empty -- I was able to create an online banking sign-on at that point. It took a couple more business days for the funds to be withdrawn via ACH from the account which I used for funding. However, the funds don't seem to show up at DanversBank for a day or two more.

What's interesting (and seems to be intentional to do the "right thing" for the customer) is that they then back-dated the transaction to the date on which the account was opened by verifying the test deposits. One other thing which happened in my situation is that the rate actually changed between the day I applied for the account and the day the account was created; when the account was created, it showed the lower, current rate (3.0% APY). However, after the account was funded, the rate went up to the rate quoted (3.3% APY) when I applied to the account.

My speculation is that they may have someone (or a process?) that "fixes" the accounts.

1
Comment #27 by Anonymous posted on
Anonymous
savings drop 2.05, cd 2.5
i just opened a few cds last night when it was still 3%, i wonder what rate i will get. Darn.

1
Comment #28 by Anonymous posted on
Anonymous
I opened 3 CD accounts during the past week or so. The process was pretty smooth and didn't take very long from initial start to ACH deposit completion. Prior to doing so, I neglected to ask about designating a beneficiary for them. Today, customer service told me I cannot do this. Upon asking for a further explanation as to why and the implications, I was transferred to the President's office and left a v-mail message. Will be interesting to see if I get a callback and what it may consist of. I've easily designated beneficiaries with both HSBC and Emigrant online accounts.

If I'd known this constraint, I probably wouldn't have opened the Danvers accounts and won't proceed with a new online savings as I'd intended.

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Comment #29 by Anonymous posted on
Anonymous
As a follow-up to my previous post, I'm pleased to say this has been satisfactorily resolved. Donna Dickie from Customer Service returned my call and informed me that a beneficiary can be designated to online accounts by sending a letter to her.

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Comment #30 by Anonymous posted on
Anonymous
I had 3 separate 4 month CDs, all coming due within 40 days of each other. I opened a savings account there so the funds could be deposited into it at maturity. After discussing with a CSR, I sent 1 set of closing instructions for all 3 CDs (close to savings account upon maturity). The closing of the first CD went well. The second matured on July 3. The money was still in the CD account as of July 7, and then disappeared. I never had the time to call and find out where it went. I found out yesterday when I got a check in the mail. Seriously, how hard is it to follow instructions.

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Comment #31 by JCE (anonymous) posted on
JCE
I would suggest sending seperate closing instructions for each account as this is what banks expect to receive even if the CSR told you otherwise. The bank clerk that received the paperwork probably couldn't figure out how to properly handle filing one set of closing intructions amongst three accounts and that left room for error.

1
Comment #32 by JCE (anonymous) posted on
JCE
I just received an email from Danversbank that later this year they will be merging with Beverly National Bank (https://www.beverlynational.com)
Judging from the pitiful interest rates at Beverly National Bank my guess is Danversbank will be lowering interest rates again. Time to shop for a new bank.

1
Comment #33 by JCE (anonymous) posted on
JCE
Rates dropped again:
Online Savings 1.50% APY
4 Month Online CD 1.75% APY

1
Comment #34 by Scott (anonymous) posted on
Scott
Big drop on 4 month CD, Now 1.25%. Also online savings down to 1.35% from 1.50%

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