Dedicated to Deposits: Deals, Data, and Discussion

Top Rate on a 2-Year CD at Institution For Savings - MA Only


Institution for Savings

Last year Institution for Savings started offering 2% CDs with terms under 5 years. The bank just came out with a new 2% CD with a term of only 2 years. Minimum deposit is $500, and the early withdrawal penalty for this 2-year term is 6 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 5/15/2014. Thanks to DA member scottj who reported on this promo in the DA forum.

Institution for Savings1.00%--24 Month CD
Accounts mentioned in this post. Rates as of July 25, 2014

When I last called this bank I was told a branch visit is required to open an account.

Institution for Savings branches are located in the Massachusetts cities of Byfield, Ipswich, Newburyport, Rowley, Salisbury 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 grade at of an A+ with a Texas Ratio of 2.59% (excellent) based on December 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.

  Tags: Massachusetts, Institution for Savings, CD rates

Related Posts

Comment #1 by QED posted on
This is an excellent rate of interest for a (relatively) short CD.  Thank you for posting, Ken.  This is a standout opportunity.

Going with a shorter CD costs money in that interest rates are most often lower.  But that monetary "cost" might be money well spent when you look upon the lost interest as your cost for a form of insurance.  I like this CD.  I wish there were more (relatively) short term opportunities like this.