EBSB Direct is offering competitive savings account deal and 3-year CD rate. The savings account offers a 1.30% APY with the rate guaranteed until January 1, 2011. It's a tiered rate account, and the 1.30% APY requires a $50K minimum balance. The rate drops to 0.75% for balances of $5K to $50K, and there's no interest on balances under $5K. In addition, there's a $15 monthly fee for balances under $5K. So this is not a good deal if you don't intend to keep a balance of at least $50K.
I first reviewed this savings account in May 2009 when they were guaranteeing 2.81% for over 4 months. As you can see, interest rates have fallen quite a bit over the last year, but the account has remained competitive. That review of EBSB Direct also included details about the bank's ACH transfer service.
3-Year Certificate of Deposit
The 3-year CD is also a fairly good deal with a 2.25% APY as of 10/04/2010. One downside is a harsh early withdrawal penalty of 12 months of interest on the amount withdrawn.
New England and New York Only
Another thing that has changed since last year is that EBSB Direct now only accepts customers from New England and New York State. This doesn't seem to be stated on the website, but I just confirmed it when I called this morning (800-657-3272).
EBSB Direct is an online division of East Boston Savings Bank. The bank has an overall health score of 3 out of 5 with a Texas Ratio of 20.98% (above average) based on 6/30/2010 data. Please refer to our financial overview of East Boston Savings Bank for more details. The bank has been a FDIC member since 1991 (FDIC Certificate # 33510).