Dedicated to Deposits: Deals, Data, and Discussion
DETAILSINSTITUTIONAPYMINMAXPRODUCT
EBSB Direct1.00%$50k$1mEBSBdirect Money Market Account
Accounts mentioned in this post. Rates as of April 23, 2014

Top Money Market Account Rate at EBSB Direct - New England and NY Only

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EBSB Direct

EBSB Direct continues to have a top rate on its money market account. It has a 1.00% 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 1/9/2014.

When I last reported on EBSB Direct, I was told that they were opening accounts only for residents of Massachusetts. Before that they had accepted customers from New England and New York. That policy appears to have returned. In the money market small print at the EBSB Direct homepage, it now states:

This account is only available through EBSBdirect.com, and the following states; Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island and New York.

Unfortunately, there’s no guarantee about how long this rate will last. Here's the rate history of the money market account over the last three years:

  • 10/31/2013: 1.00% APY
  • 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 which has 27 offices in Massachusetts.

East Boston Savings Bank has an overall health grade of a B with a Texas Ratio of 17.66% (above average) based on September 2013 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 Money Market Rate Compares

We are slowly starting to see more savings and money market accounts with 1% yields. Just recently First Trade Union Bank started to offer 1% for a $2,500 minimum balance on its FT High-Yield Savings Account. Last November, Emigrant Bank launched MySavingsDirect with a no-minimum savings account that has a 1.00% APY. In October, iGObanking.com increased the yield on its money market account to 1.00%, but this requires a $100,000 minimum balance. SmartyPig has been offering a 1.00% APY on its savings account without a balance cap since June 2012. Lastly, Connexus Credit Union has been offering a 1.15% APY for a $100,000 minimum balance since April 2011. However, this requires an active checking account. All of the above rates are nationally available as of 1/9/2014.

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  Tags: EBSB Direct, savings account, Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York

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