Institution for Savings is offering two very competitive long-term CD rates: 3.00% APY for a 3-year term and 3.25% APY for a 5-year term. Minimum deposit is $500. These rates are listed in the bank's rate table as of the morning of 8/10/2010.
One downside to these long-term CDs is an early withdrawal penalty that's higher than average. According to the bank's CD page, the early withdrawal penalty for principal withdrawn is "Nine months interest whether earned or not on terms 25-47 months" and "Twelve months interest whether earned or not on terms longer than 48 months". At least they clearly describe the penalties on the website.
The bank still offers a reward checking account, but the rate has fallen considerably since I first reported on it in February 2008. At that time the rate was 6% APY on balances up to $50K. It fell to 1.50% APY by last year where it has remained since then (see account review).
It appears that a branch visit is required to open an account. Branches are located in the Massachusetts cities of Newburyport, Salisbury, Ipswich and Rowley.
The bank continues to have top ratings for safety and soundness: 5 stars (superior) at BauerFinancial, 4 stars (sound) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview for Institution for Savings). These ratings are based on 3/31/10 financial data. The bank was established in 1820, and it has been a FDIC member since 1985 (FDIC Certificate # 90250). Funds over the FDIC limit are insured by the Deposit Insurance Fund (DIF) which is a private insurance fund.
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