Update 3/05/2010: The bank has restricted the online CDs and money market account to residents of New England and New York State. I just called their toll-free number and received this info.
EBSB Direct has started offering online CDs, and it's offering a competitive 10-month CD with a 1.77% APY. Minimum deposit is $1,000. This is listed at the bank's website as of 12/14/09. The site also lists a 36-month CD, but the rate is much less competitive at 2.35% APY.
I first reported on EBSB Direct in May when it launched its internet savings account. The savings account rate has remained fairly competitive, but it requires a $50,000 balance to qualify for the top rate, which is currently 1.67% APY.
The website doesn't include many of the CD details so I called the bank this morning at its toll-free number (800-657-3272). Here are some of the details I received from the CSR:
- Available nationwide
- Funded via ACH transfer from an external account
- CD rate locks when you submit your application
- Rates are typically changed on Wednesdays
- Beneficiaries can be added in the application
- At maturity, there's a 10-day grace period
- Receiving the CD funds via ACH is an option
EBSB Direct is part of East Boston Savings Bank which operates 13 branch offices in the greater Boston area. The bank has $1.15 billion in assets and $931 million in deposits based on 9/30/09 FDIC data.
The bank's ratings for safety and soundness are a little above average: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1991 (FDIC Certificate # 33510).
Other Competitive Certificate of Deposit Rates
If you don't mind a little longer term, you can still get 2% APY at a few banks. One bank is ING Direct which started offering a 2% APY 12-month CD on Friday (see post).
For other CDs, please refer to the following:
- CD rates at DepositAccounts.com (overview of DepositAccounts.com)
- My weekly list of hot nationwide and local CD deals