We are seeing more banks coming out with 2% CDs, and they are not all long-term CDs. One example of this is at Institution for Savings. It just raised its 30-month CD yield to 2.00%. Minimum deposit is $500, and the early withdrawal penalty for this 30-month term is 9 months of interest, earned or not earned. The CD details and the link to the rates page are listed in the bank’s CD page as of 9/11/2013.
This year Institution for Savings has been shortening the term required to earn 2%. In April they started to offer a 2% 4-year CD, and in July they started to offer a 2% 40-month CD. Hopefully, we’ll see other banks and credit unions follow.
When I last called this bank I was told a branch visit is required to open an account. They do accept out-of-state deposits if you can visit a branch. Note, since this policy often changes, 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).
The bank has an overall health score at DepositAccounts.com A+ with a Texas Ratio of 3.40% (excellent) based on June 2013 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.
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