Dedicated to Deposits: Deals, Data, and Discussion
Institution for Savings2.00%--48 Month CD
Institution for Savings2.00%--60 Month CD
Accounts mentioned in this post. Rates as of August 22, 2014

Top 4-year and 5-year CD Rates at Institution For Savings in MA


Institution for Savings

Institution for Savings did something unusual today. It not only raised its CD rate, but it also raised it to 2.00% APY. Its 4-year CD now has a 2.00% APY which is up from 1.75%. Its 5-year CD continues to have a 2.00% APY which is also very competitive in today’s environment. Minimum deposit is $500. One downside with these CDs is an early withdrawal penalty that’s above average. CDs with terms of 4 and 5 years have an early withdrawal penalty of 12 months of interest, earned or not earned. The CD details are listed in the bank’s CD page as of 4/15/2013.

In today’s world I’m always a little suspicious of rate hikes, especially when it puts a rate to 2%. So I called the bank and confirmed the rate hike. It’s a new branch special in recognition of the new Topsfield office. However, the CD is available at all of the bank’s branches. A branch visit is required to open an account. I was told that they do accept out-of-state deposits if you can visit a branch. Note, it’s always a good idea to verify qualifications with a branch manager before making any long drive.

Institution for Savings branches are located in the Massachusetts cities of Newburyport, Salisbury, Ipswich, Rowley and Topsfield.

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 1.01% APY in 2011, and last year it fell to 0.75% APY (see account review).

Bank Overview

The bank has an overall health score at of 5 stars (out of 5) with a Texas Ratio of 3.24% (excellent) based on December 2012 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.

How the CD Rate Compares

It’s not easy to find 2% CDs these days. Without a checking requirement, there’s only one that I know of that’s nationally available. It’s a 5-year CD with a 2.00% APY at Mountain America Credit Union. The best 5-year CD rate at an internet bank is 1.85% APY at Barclays. These rates are accurate as of 4/15/2013.

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

  Tags: Massachusetts, Institution for Savings, CD rates

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