EBSB Direct is offering a competitive 3-year CD yield of 1.80% APY. Minimum deposit is $1,000. This used to a better deal back in June when the yield was 2.25%, but it's still quite competitive compared to what's available today. There's also a 10-month CD, but the rate is much less competitive at 0.55% APY. Minimum deposit is $1,000. These rates are listed at EBSBdirect.com as of 10/04/2011.
According to the bank's disclosure, "terms over 12 months the penalty will equal 6 months interest on the amount withdrawn."
EBSBdirect.com also offers an online savings account, but this rate is no longer competitive at 0.80% APY for balances of at least $50K.
New England and New York Only
Even though there's an online application, the bank limits new applications to residents of New England and New York State. I just confirmed this with the bank today. This limitation isn't noted at EBSBdirect.com which isn't a sign of good customer service since some people may waste their time applying.
EBSB Direct is an online division of East Boston Savings Bank. The bank has an overall health score of 3 stars (out of 5) with a Texas Ratio of 29.88% (average) based on June 2011 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).
How This CD Rates Compare
Back in June, EBSBdirect.com cut the 3-year CD yield from 2.25% to 1.80%. I'm afraid this 1.80% APY is now quite competitive especially for a bank. The highest 3-year CD rate nationally available at a bank is 1.65% APY at Doral Direct Bank. Rates are little higher at some all-access credit unions. The highest is 1.91% APY at Melrose Credit Union and at Velocity Credit Union. These rates are accurate as of 10/4/2011.
Searching for 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.