Belmont Savings Bank (Belmont Savings) is offering a limited-time 7-month Holiday CD Special earning 2.75% APY. The minimum opening deposit is $500 of “new-to-bank” money or with funds “from a maturing Belmont Savings CD at its maturity date.” The maximum allowed deposit is $1 million and there is a limit of one CD Special per taxpayer identification number.
As stated in the Truth-in-Savings document, the Early Withdrawal Penalty reads as follows:
If your account has an original maturity of one year or less, the fee we may
impose will equal three months interest on the amount withdrawn subject to penalty.
Funding and Accessing Maturing Funds
According to CSR, there is no dollar limit on incoming ACH transfers to fund the Holiday CD Special, other than the $1 million maximum deposit restriction. That answer surprised me, so I contacted another branch and received the same answer – up to $1 million.
As usual, accessing maturing funds isn’t as simple as an ACH transfer. The only options are a cashier’s check, or an in-house transfer to an established Belmont Savings liquid account. There is a 10 day grace period before automatic renewal happens.
Thanks to DA reader, Carpline, for the Forum post about Belmont Savings Bank’s Holiday CD.
Select Money Market Savings
Belmont Savings’ Select Money Market Savings (SMMS) is currently earning 2.20% APY on balances up to $250k and is guaranteed through June 30, 2019. Balances greater than $250k and less than $1m earn 0.40% APY.
The SMMS requires a minimum $25k opening deposit, and like the Holiday CD Special, requires “New-to-Bank money only or with funds from a maturing Belmont Savings CD at its maturity date.” When I first saw the promo for the SMMS, I thought it would be the perfect place to park maturing funds from the Holiday CD, but the dates just don’t work out to get in on the guaranteed 2.20% APY.
In addition to limited check writing, a debit card is available for the SMMS. If the average daily balance should fall below $25k, a $25 monthly service fee will apply. There is a $15 excessive withdrawal fee per transaction over the six allowed per statement cycle.
DIF Deposit Insurance
Belmont Savings Bank offers additional protection for large deposits through its Depositors Insurance Fund (DIF) membership. The DIF is a private, industry-sponsored insurance fund that insures all deposits above Federal Deposit Insurance Corporation (FDIC) limits at Massachusetts-chartered savings banks.
As stated on the Personal Bank Account Deposit Insurance page,
Belmont Savings Bank customers have their deposits insured in full through a combination of deposit insurance from the FDIC and the Depositors Insurance Fund (DIF). The FDIC insures all deposits up to $250,000 per depositor. All deposits above these amounts are insured by the DIF.
Both the FDIC and DIF have been insuring bank deposits for more than 50 years. The DIF is the oldest, largest and strongest state-chartered deposit insurer in the nation, including Federal agencies.
Headquartered in Belmont, Massachusetts, Belmont Savings Bank’s primary market area is Middlesex County, but the 7-month Holiday CD Special (and the SMMS account) can be opened online by all Massachusetts residents, “as well as New Hampshire and Rhode Island residents in select zip codes.” The first page of the online application requires a Zip Code to be entered. While I didn’t enter every NH and RI Zip Code, it seems that residents of northeast Rhode Island and southern-most New Hampshire can apply.
Belmont Savings Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 0.57% (excellent) based on September 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $182.46 million, an excellent growth rate of 12.3%. Please refer to our financial overview of Belmont Savings Bank (FDIC Certificate # 23901) for more details.
Founded in 1885, Belmont Savings Bank is currently the 14th largest bank in Massachusetts, but that will be changing relatively soon. According to a November 27, 2018 press release,
People's United Financial, Inc. (NASDAQ: PBCT), the holding company for People’s United Bank, N.A., announced today an agreement to acquire BSB Bancorp, Inc. (NASDAQ: BLMT), the holding company for Belmont Savings Bank (“Belmont”), a state-chartered savings bank headquartered in Belmont, Massachusetts, in a 100% stock transaction valued at approximately $327 million.
The transaction is expected to close by the second quarter of 2019.
How the CD Special Compares
When compared to 374 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available within FOM, Belmont Savings Bank’s 7-month Holiday CD Special APY currently ranks second.
The above rates are accurate as of 12/11/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.