Dedicated to Deposits: Deals, Data, and Discussion

Competitive Short-Term Internet CD at EBSB Direct - Available Nationwide


EBSB Direct

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 (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:

  Tags: EBSB Direct, CD rates, New York, Maine, New Hampshire, Vermont, Connecticut, Massachusetts, Rhode Island

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Comment #1 by MrFrugality (anonymous) posted on
As of 03/05/10, this 1.77% APY CD is NOT AVAILABLE NATIONWIDE. I attempted to open an account and the application indicated the account was not availabe in the state where I reside.

Comment #2 by KenBDG posted on
Thanks for the alert. I just called their toll-free number and according to the CSR, they are now restricting these CDs and the money market account to residents of New England and New York State. I've updated the post. I requested that they include this info on their website so customers won't waste their time trying to apply.

Comment #3 by Anonymous posted on
I just opened a 36 month CD (APY 2.75%) online through the EBSB website, even though I live in California.  It's possible I was allowed to do this because I already have an EBSB money market account, or else perhaps the CD is now available nationwide again.

Comment #4 by Scott (anonymous) posted on
10 month down to 1.25%, 36 month still 2.75% and MM 1.55%

Comment #5 by Anonymous posted on
Money market savings down from 1.55 to 1.3%

Comment #6 by Anonymous posted on
I was able to open a CD by transferring some money from the Money Market account over to the CD.  I don't live in the New England area, but since I already have an account at the bank previously, you can open another account.