Massachusetts Deposit Account Rates and Deals

Institution for Savings continues to offer two very competitive long-term CD rates. Its 5-year CD still has a 3.25% APY. Its 4-year CD is also competitive with a 3.00% APY. Minimum deposit is $500. These rates are listed in the bank's rate table as of 9/07/2010. Last month the 3-year CD yield used to be 3.00%, but it recently plummeted to only 1.25%. So these 4-year and 5-year CD rates may not last much longer.

One downside to these long-term CDs is an early withdrawal penalty that's higher than average. According to the bank's CD page, the early withdrawal penalty for principal withdrawn is "Nine months interest whether earned or not on terms 25-47 months" and "Twelve months interest whether earned or not on terms longer than 48 months". At least they clearly describe the penalties on the website.

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 1.50% APY by last year where it has remained since then (see account review).

It appears that a branch visit is required to open an account. Branches are located in the Massachusetts cities of Newburyport, Salisbury, Ipswich and Rowley.

The bank has an overall health score of 4 out of 5 with a Texas Ratio of 1.34% at DepositAccounts.com. This is based on 6/30/10 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.

Searching for the Best CD Rates

It's getting difficult to find 5-year CDs with yields above 3.00%. For those who have $175K to invest, USAA Bank is offering a 3.31% APY 5-year CD nationwide. For smaller balances, 3% is about all that you can get. Sallie Mae Bank continues to offer a 3.00% APY 5-year CD that's available nationwide. These rates are as of 9/07/2010.

To search for the best nationwide rates and the best rates in your state, please refer to the following sections of DepositAccounts.com:

• CD rates
• IRA CD rates

Institution for Savings is offering two very competitive long-term CD rates: 3.00% APY for a 3-year term and 3.25% APY for a 5-year term. Minimum deposit is $500. These rates are listed in the bank's rate table as of the morning of 8/10/2010.

One downside to these long-term CDs is an early withdrawal penalty that's higher than average. According to the bank's CD page, the early withdrawal penalty for principal withdrawn is "Nine months interest whether earned or not on terms 25-47 months" and "Twelve months interest whether earned or not on terms longer than 48 months". At least they clearly describe the penalties on the website.

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 1.50% APY by last year where it has remained since then (see account review).

It appears that a branch visit is required to open an account. Branches are located in the Massachusetts cities of Newburyport, Salisbury, Ipswich and Rowley.

The bank continues to have top ratings for safety and soundness: 5 stars (superior) at BauerFinancial, 4 stars (sound) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview for Institution for Savings). These ratings are based on 3/31/10 financial data. 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.

Searching for the 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 DepositAccounts.com.

Digital Credit Union recently increased the rates on its Jumbo certificates. Even though the credit union calls these Jumbo certificates, they only require a $25K minimum deposit. For the standard CDs, the best rates include a 3.01% APY 60-month CD, a 1.51% APY 12-month CD and a 1.35% APY 6-month CD. One nice perk for terms of 12 months and under is an add-on feature that allows you to make unlimited additional deposits of at least $100 during the term.

The credit union also has a good deal on its Jump-Up Certificate. The best one is the 15-month CD with a 1.55% APY. The 27-month CD is not quite as competitive with a 1.76% APY. If rates go up during the term, you can jump-up to the higher rate, one time, for the rest of the term. These are also jumbo rates.

The above rates are listed in DCU's rates page as of 8/05/2010.

Checking relationship required

One important note about the above rates is that they require a Loyalty Checking Plus relationship. Without Loyalty Checking Plus relationship you'll earn 0.25% less than rates shown above. Please refer to this DCU page for how to qualify for Loyalty Checking Plus.

Other Reasons to Join

The CD rates may not be high enough to make up for the hassles of Loyalty Checking Plus, but DCU has a few other reasons that can make a DCU relationship worthwhile:

• PC Deposit - This is a remote deposit capture service which allows members to make check deposits by using a home scanner.
• Free FICO Credit Scores - You can receive your Equifax FICO Credit Score once a month for free (see review)
• History of competitive CD specials - DCU has a history of offering very competitive CD specials with terms from 5 to 20 months. I first mentioned DCU in 2005 when they were offering a 5% 16-month CD (the good old days).

Credit Union Membership

Anyone can join DCU via membership in an association. Refer to this credit union page for the list of associations. The least expensive membership is $10 for joining Reach Out for Schools. You can be immediately eligible to join DCU if you live, work, worship or attend school in parts of Georgia and Massachusetts. Refer to the Join DCU page for the full details.

In the instructions for joining DCU there are links to an online membership application and a PDF application. A reader who commented on his experience with the online application in my DCU post from 2008 provided the instructions he received from DCU after he applied:

In order to continue processing your application, please mail a $5 check or money order payable to DCU to fund your membership.

If you have joined through a sponsoring organization, then please make sure to also include funds to cover that organization's membership fee.

Also, please mail a copy of your driver's license or passport. If sending a passport, or if your license does not show your current address, please also send either a utility bill in your name (electric, gas, home telephone) or a copy of your apartment lease agreement. If you have listed a Joint Owner on your application, that person must also send the required ID and address proof.

Please note, we do not accept cell phone bills, bank statements, credit card statements or pay statements as address verification.

Make sure to check with the credit union for the latest instructions. One downside to joining is a potential hard credit inquiry (which can temporarily ding your credit score). Here's what a commenter mentioned in my August 2008 DCU post:

I also have been a five-year DCU member, holding several jumbo CDs with them. Yet, when I added checking to my account this past January, they ran a check on me through Equifax!

Branches are located throughout Massachusetts, in Hudson, Merrimack and Nashua in New Hampshire, in Colorado Springs, Colorado and in Alpharetta, Georgia.

The credit union's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial and an overall health score of 3 out of 5 at DepositAccounts.com (see our Digital Credit Union review). Both ratings are based on March 2010 data. Note, Bankrate doesn't currently have a rating for DCU.

DCU is federally insured by the NCUA (Charter # 23521). It's a large credit union with $3.9 billion in assets.

NUVO Bank & Trust Company is offering very competitive rates on its personal and business savings accounts. The personal savings account is called the Growth Savings Account, and it pays 2.52% APY for balances up to $25K and 1.50% APY on portion of the balance over $25K. This isn't a reward checking account so there are no debit card usage or direct deposit requirements. Avoiding ATM fees does require direct deposit or a balance of at least $1K. This is a good deal even for those who have large balances. The blended APY for a $100K balance comes out to 1.76%. The only potential issue is that there's no guarantee how long this rate will last. These rates are current as of 8/05/2010.

The business savings account is called the BizSavings Account, and it pays 2.02% APY on balances up to $50K, and 1.01% APY on portion of balance over $50K. If you use remote deposit capture, the first tier rate jumps to 2.28% APY. These rate are current as of 8/05/2010.

Top 5-Year CD Rate

If you want an account with a guaranteed rate, a CD would be the best option. The bank also has a competitive 5-year CD with a 3.05% APY. This is listed in the bank's deposit rates table as of 8/05/2010.

$100 Bill Pay Bonus

There's also a good checking account deal which is essentially a $100 bonus. Here's how the bank describes it in their About page:

Customers who take advantage of our FREE online bill pay will receive $10 for every automatic payment that is set up, up to 10 accounts, or $100

They offer a free checking account, and like the savings account, you can avoid ATM fees nationwide with either direct deposit or a $1K balance.

I contacted the bank about availability of these accounts, and I was told that you have to visit a branch in person, with valid identification, to open a new account. It's a small bank with one office in Springfield, Massachusetts.

The bank's ratings for safety and soundness are a little mixed: 3 stars (performing) at Bankrate.com and an overall health score of 5 out of 5 at DepositAccounts.com (see our NUVO Bank & Trust Company review). Both ratings are based on 3/31/10 financial data. The bank has been a FDIC member since 2008 (FDIC Certificate # 58621). Note, since the bank is so new, it doesn't have a rating at BauerFinancial.

Service Credit Union continues to offer two certificate specials. The rates have gone down since last month, but they remain competitive: 1.65% APY for 19 months and 1.25% APY for 8 months. Minimum deposit is $1,000, and these are also available in an IRA. The credit union continues to have competitive rates on its standard share and IRA certificates which include a 2.25% APY 3-year CD and a 3.00% APY 5-year CD. These rates are listed in the credit union's rates page as of 8/03/2010. According to the credit union rep, these should last at least until 8/14/2010.

Other CD Specials

In addition to these specials, the credit union has a good low-max CD special: 4.00% APY 4-month CD with a maximum of $1,000. The low max and the short term means you won't earn much on this special, but it's easy to set up if you go there to open other CDs. Note, this special can only be opened at a credit union branch.

The credit union also has some good deals for seniors. There's a Senior Account program in which any person age 62+ who maintains a direct deposit of their Social Security or other payroll check is eligible to receive the 1 Year CD rate + ½% for six months. Based on their current standard CD rate of 1.15% APY, this comes out to a 1.65% APY 6-month CD. Minimum deposit is $250, and add-on deposits are allowed. In addition to senior members, STAR members also qualify. Those who earn less than $43,450 per year can qualify for STAR membership.

There's also a good deal for certain military members. It's called the Warrior Reward Certificate, and it pays 2.15% APY for 6 months as of 8/03/2010. Please refer to the bottom of the rates page for details for the military requirements to qualify for this CD. This CD also requires direct deposit.

Credit Union Membership

Service Credit Union membership is available to anyone living or working in New Hampshire (except Coos County which is way north in NH) and in the Falmouth MA area, as well as anyone related to an existing member (by family), or anyone who has served in the US Military. Please refer to the credit union's membership eligibility page for the full details. Membership requires a $5 minimum balance in the share savings account.

Branches are located in the New Hampshire cities of Bedford, Epping, Keene, Lebanon, Manchester, Newington, Portsmouth, Rochester, Salem and Somersworth and in Falmouth, Massachusetts. There are also branches in Germany to service military members.

The credit union's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial, 4 stars (sound) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview of Service CU). These ratings are based on March 2010 data. The credit union is federally insured by the NCUA (Charter # 68375). It's a large credit union with $1.64 billion in assets and $1.24 billion in deposits.

Mt. Washington Bank is listing a competitive 19-month special CD rate of 2.00% APY. Minimum deposit is $1,000. There's also a special 30-month bump-up CD/IRA special with a $500 minimum. These specials are listed at the top of the deposit rates page as of 8/01/2010.

According to the deposit rates page, they only accept deposits from Massachusetts residents. Branches are located in the Massachusetts cities of South Boston, Dorchester and Jamaica Plain.

Mt. Washington Bank is a division of East Boston Savings Bank. East Boston Savings Bank's ratings for safety and soundness are a fair: 3½ stars (good) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 3 out of 5 at DepositAccounts.com (see our financial overview of East Boston Savings Bank). The bank has been a FDIC member since 1991 (FDIC Certificate # 33510).

Danversbank is offering a few competitive CD and IRA CD rates. The best one is a 2.50% APY 3-year CD. It used to be easy to find 3-year CDs with yields of 2.50%, but that's no longer the case in today's record low interest rate environment. The other CD rates that are fairly competitive include a 2.00% APY 30-month CD and a 2.75% APY 60-month CD. Minimum deposit is $500. These rates are listed in Danversbank's rates page as of the morning of 7/27/2010.

Even though Danversbank offers nationwide savings account and reward checking account, I was told by a Danversbank CSR that these CDs can only be opened at one of their branches. Danversbank's branches are located in several Massachusetts cities including Boston, Danvers, Salem and Wilmington.

Review of Danversbank's Internet Accounts

Danversbank still has one of the best nationwide rewards checking account with a 4.00% APY for balances up to $25K. Danversbank used to have a very competitive nationwide savings account, but this account now pays only 1.00% which is low even by today's standards for internet savings accounts. Danversbank does offer one internet CD with a 4-month term, but that also has a low yield of 1.00%. That's actually competitive for that term, but I don't see any advantage of that CD over an internet savings account. The above rates are listed at the bottom of Danversbank's rates page as of 7/27/2010.

Danversbank's ratings for safety and soundness are above average: 5 stars (superior) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview for Danversbank). These ratings are based on 3/31/10 financial data. The bank has been a FDIC member since 1985 (FDIC Certificate # 90185).

Searching for the 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 DepositAccounts.com.

Randolph Savings Bank is offering several good deals on its CDs and IRA CDs. The most competitive is a 3.15% APY 60-month CD. The other ones include a 2.00% APY 30-month CD special and a 2.50% APY 48-month CD special with a bump option. For the bank's Rhode Island customers, there's a very competitive 10-month CD with a 1.50% APY. Minimum deposit is $1,000. These rates are listed in the bank's Rhode Island rate sheet and the Massachusetts rate sheet as of 7/23/2010.

The bank has an online application, but it states that "new Accounts are opened for existing customers and those who live or work within our defined market area."

Branches are located in the Massachusetts cities of Randolph, Stoughton, Holbrook and in the Rhode Island cities of Coventry and Cranston.

The bank's ratings for safety and soundness are above average: 5 stars (superior) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 3 out of 5 at DepositAccounts.com (see our financial overview for Randolph Savings Bank). The bank has been a FDIC member since 1986 (FDIC Certificate # 90270).

Searching for the 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 DepositAccounts.com.

RTN Federal Credit Union is offering a 1.70% APY on its Jumbo 12-month certificate. This requires a $50K minimum deposit. The rate for a $1K minimum deposit is much smaller at 1.20% APY. This is one of the few institutions that provide a sizable reward for a large deposit. This CD is also available in an IRA. These rates are listed in the credit union's rate table as of the morning of 7/19/2010.

My last post on this credit union was in early May when this CD yield was 2%. Unfortunately, that didn't last long. Hopefully, this current rate will last for a while. A yield of 1.70% is currently quite competitive for a 1-year term (unfortunately).

In addition to select employee groups, you can also qualify for membership in this credit union if you belong to certain organization groups. Refer to the credit union membership page for more details. The sponsors group list has all the eligible employers and organizations. Two organizations which appear open to all are the Gore Place Society or the Waltham Historical Society. Individual membership for the Gore Place Society is $30. Note, it's always best to check with the credit union about an organization to ensure membership will make you eligible to join the credit union. There have been cases at other credit unions in which they changed the listed requirement from membership of an organization to an employee of that organization.

The credit union has some details about the member application process in this page. Here's an important excerpt:

If you are a Massachusetts resident, we request that you visit an RTN branch location to process your membership application. When applying for an RTN membership via the US mail from outside of Massachusetts, we require your signature to be notarized and you provide us proof of membership eligibility.

You can tell this credit union was originally set up to serve Raytheon employees. Many of the branches are located in Raytheon facilities. Branches that are publicly available are located in the Massachusetts cities of Amesbury, Danvers, Marlborough, Tekksbury and Waltham.

The credit union's ratings for safety and soundness are above average: 5 stars (superior) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview of RTN Federal Credit Union). These ratings are based on March 2010 data, except for Bankrate which is based on 12/31/09 data. The credit union is federally insured by the NCUA (Charter # 24311).

Searching for the 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 DepositAccounts.com.

NMTW Community Credit Union has several good deposit deals. One is a 33-month add-on CD with a 2.45% APY (2.55% APY for the IRA). Minimum deposit is $500, and it allows two additional deposits to be made during the term of the CD. There's also a 13-month add-on CD that allows one additional deposit to be made. However, the rate is not as competitive with a 1.25% APY (1.35% APY for the IRA). These rates are listed in the credit union's rates and fees page as of 7/16/2010.

As I described in this review of add-on CDs, the add-on feature can be useful as an insurance policy against a rate environment in which rates stay low. Unfortunately, there are not many choices for add-on CDs. So these local deals are often the best that are available.

The credit union also has a good deal on its Super Saver Account promotion. The credit union will reward you $100 after 12 months of $100 monthly deposits into the account. The catch is that you must open a checking account. Three debit card transactions per month are required along with a $100 initial deposit and a monthly deposit of $100.

There's also a nice refer-a-friend bonus in which both you and the new member receive a $20 gift.

Membership is open to anyone who lives, works, or attends school in Middlesex or Essex Counties in Massachusetts, several cities and towns within Norfolk and Worcester Counties in Massachusetts, and Rockingham and Hillsborough Counties in New Hampshire. Please refer to the credit union's Join Now page for the full details.

The credit union's ratings for safety and soundness are above average: 5 stars (superior) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview for NMTW Community Credit Union). These ratings are based on March 2010 data except for Bankrate which is based on 12/31/09 data. The credit union is federally insured by the NCUA (Charter # 66365).