Dedicated to Deposits: Deals, Data, and Discussion

3.50% 48-Month CD at Rollstone Bank & Trust in MA - Local Only


Rollstone Bank & Trust
Update 1/09/2010: The 48-month CD special is no longer listed at the bank's website.

Rollstone Bank & Trust is offering two CD specials. The most competitive is the 48-month CD special which has a 3.50% APY. The short-term special has a 1.50% APY for a 9-month term. Minimum deposit is $1,000 for the 48-month CD and $100 for the 9-month CD. Both specials are also available in an IRA. These rates are listed at the bank's deposit rates page as of 12/20/09.

Update 12/22/09: The bank just increased the yield on the 7-month CD special from 1.50% to 1.92% APY. That makes the 7-month special much more competitive.

The bank has long offered a reward checking account. In 2007 it started out with a 6.01% APY for balances up to $100K. The rate has fallen considerably, and it's now 2.75% APY for balances up to $50K (see post).

Readers have reported being told by the bank that you must live within 50 miles of a branch, and the accounts must be opened in the branch. This might be a challenge for the next few days after this weekend's winter storm. Branches are located in Fitchburg, Leominster, Harvard and Townsend, Massachusetts.

The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at (based on 6/30/09 data). The bank was established in 1846 and has been a FDIC member since 1957 (Certificate # 17797).

Other Competitive Certificate of Deposit Rates

Not many banks or credit unions are offering rates above 3% for 4-year terms. The highest yield on my nationwide list is 3.15% APY at Hudson City Savings Bank. For other CD rates please refer to the following:

Related Pages: Massachusetts, CD rates, IRA rates, Rollstone Bank & Trust

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Comment #1 by Anonymous posted on
Although I am in Mass and may qualify for this, but who would be stuck with the money for 4 years and earn a mere 3.5%?

Comment #2 by Anonymous posted on
Who knows?
The way things are going, 3.5% may look pretty good even 4 years from now.

Comment #3 by Anonymous posted on
If you invest in fixed income as I have in the last 32 years I think you will find that you loose money while waiting for rates to go up. Always start your CD's by laddering them. As they become due go out as long as you have to go to get the highest current rates. If you have to go out 2 years, 5 years, 7 years, 10 or 15 years. You can always get your money if you need it. You loose while you wait.

Comment #4 by Anonymous posted on
I agree, that if you have to do CDs, laddering is the best approach.

But why wouild one do CDs when Reward Checking Accounts (RCAs) are at 5% (liquid money)??

Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
I hope reward checking accounts can maintain high rates, but there's no guarantee. I remember in 2007 when State Bank of Toledo was offering a 6% with no cap on its reward checking account. It didn't seem to make any sense to go with a long-term 6% CD at PenFed. Now, that reward checking is only paying 2.51% with a $70K cap. It's still a decent deal for liquid cash, but it's a big drop from 6%.

Comment #6 by Anonymous posted on
That is precisely why I use the CD ladder approach. Started that years ago and am very happy with it.

And thanks to Banking Guy and this site, I have built a very sturdy CD ladder on which my wife and I enjoy a secure and comfortable retirement.

Comment #7 by Anonymous posted on
Thanks for the laddering CD idea and the comparison of RCAs vs. CDs; both timely and beneficial.