Institution for Savings did something that's rare these days. It made substantial increases on many of its CD rates. The three best rates as listed at the bank's rate table as of 6/17/2011 include:
- 2.50% APY for 30 months and 3 years
- 2.75% APY for 4 years
- 3.00% APY for 5 years
Minimum deposit is $500. One downside to these long-term CDs is an early withdrawal penalty that's larger 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 According to the bank's CD page, the early withdrawal penalty for principal withdrawn is "Nine months interest whether earned or not on terms 25-47 months" and "Twelve months interest whether earned or not on terms longer than 48 months".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.
Thanks to the reader scottj who mentioned these new CD rates in the discussion forum.
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).
Local Deal Only
I asked the bank about out-of-state deposits. This is what I was told in an email:
In order to establish a relationship with the Bank, we do require that you are present at one of our five branch locations. Being an out of state resident would also require that you have a direct tie to our community.
Institution for Savings branches are located in the Massachusetts cities of Newburyport, Salisbury, Ipswich and Rowley.
The bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 2.84% (excellent) based on March 2011 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.
Comparing the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.