Top Money Market Account Rate at EBSB Direct - MA Only

EBSB Direct has recently increased the high-tier rate of its money market account to a very competitive level. It's now 1.17% APY for balances of $50K to $1 million. For balances between $5K and $50K, the rate is 0.25%. No interest is paid for balances under $5K. New money is required. These rates are listed at the EBSB Direct home page as of 3/4/2013. Thanks to DA member scottj who posted on this news in this forum thread.

One thing that has changed with EBSB Direct is that they are now only opening accounts for residents of Massachusetts. I was informed of this by a bank CSR today. The EBSB Direct webpage only says that "this account is only available through EBSBdirect.com and in select markets only." In past years they had accepted customers from New England and New York.

If you are a MA resident, this is a good deal. However, there is no guarantee how long this will last. The CSR didn't provide any insights about how long this might last. Here's the rate history of the money market account over the last three years:

• 02/01/2013: 1.17% APY
• 01/12/2013: 0.60% APY
• 09/13/2011: 0.80% APY
• 04/29/2011: 1.10% APY
• 10/04/2010: 1.30% APY

There's an online application, and the account can be funded with an ACH bank-to-bank transfer. Once the account is established, an unlimited number of links can be set up to your accounts at other banks. Refer to the bank's FAQs for more details.

DIF Deposit Insurance Adds to FDIC

For those with large savings, you might be interested in the bank's DIF membership. Here's what is stated at EBSB Direct's About page:

As a member of both the Federal Deposit Insurance Corporation (FDIC) and the Deposit Insurance Fund of Massachusetts (DIF), all of your deposits are insured in full. That means that every dollar you have on deposit with East Boston Savings Bank is fully insured without limit.

Note, DIF is a private deposit insurance fund and covers deposits over the FDIC limit.

Bank Overview

EBSB Direct is an online division of East Boston Savings Bank. The bank has an overall health score of 4 stars (out of 5) with a Texas Ratio of 20.07% (average) based on September 2012 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).

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