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Institution for Savings2.00%--48 Month CD
Institution for Savings2.00%--60 Month CD
Institution for Savings1.00%--36 Month CD
Institution for Savings0.75%$500$50kBonus Checking
Accounts mentioned in this post. Rates as of August 19, 2014

Competitive Long-Term CD Rates Continue at Institution for Savings in MA - Local Only


Institution for Savings

Institution for Savings continues to offer two very competitive long-term CD rates. Its 5-year CD still has a 3.25% APY. Its 4-year CD is also competitive with a 3.00% APY. Minimum deposit is $500. These rates are listed in the bank's rate table as of 9/07/2010. Last month the 3-year CD yield used to be 3.00%, but it recently plummeted to only 1.25%. So these 4-year and 5-year CD rates may not last much longer.

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 According to the bank's CD page, the early withdrawal penalty for principal withdrawn is "Nine months interest whether earned or not on terms 25-47 months" and "Twelve months interest whether earned or not on terms longer than 48 months".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 has an overall health score of 4 out of 5 with a Texas Ratio of 1.34% at This is based on 6/30/10 data. Please refer to our financial overview of Institution for Savings for more details. 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.

Searching for the Best CD Rates

It's getting difficult to find 5-year CDs with yields above 3.00%. For those who have $175K to invest, USAA Bank is offering a 3.31% APY 5-year CD nationwide. For smaller balances, 3% is about all that you can get. Sallie Mae Bank continues to offer a 3.00% APY 5-year CD that's available nationwide. These rates are as of 9/07/2010.

To search for the best nationwide rates and the best rates in your state, please refer to the following sections of

  Tags: Massachusetts, Institution for Savings, CD rates, IRA rates

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Comment #1 by Mark K. (anonymous) posted on
Mark K.
Unfortunately, a branch visit is definitely required.  I confirmed that with the bank yesterday.  For those of us in the Boston area, it would be a long drive down to the Cape.