Colonial Federal Savings Bank (MA) Ups 4-Year CD To 3.25% APY

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Deal Summary: CDs – 4-year (3.25% APY), 27-month (3.00% APY), 17-month (2.75% APY), $1k minimum deposit.

Availability: Market area is primarily Norfolk County, Massachusetts.

For a limited time, Colonial Federal Savings Bank (Colonial Federal) has special rates on three of its CDs: 4-year (3.25% APY), 27-month (3.00% APY), and 17-month (2.75% APY). Following my “Special Rate Rule of Three,” Colonial Federal is offering one very competitive rate, one good rate, and one not-so-special rate. In this case, the 4-year CD has the very competitive rate. The minimum deposit is $1k, with no stated balance cap.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.25%$1k-Colonial Federal Savings Bank4 Year CD
3.00%$1k-Colonial Federal Savings Bank27 Month CD
2.75%$1k-Colonial Federal Savings Bank17 Month CD
Rates as of May 21, 2019.

The 4-year CD’s new APY is its highest rate since DA began tracking the CD in 2011. Before last week’s addition of 190 bps, the APY had languished at 1.35% for more than six years.

The three CDs are also available as IRAs (Traditional, Roth, and CESA), earning the same APYs with the same funding requirements.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.25%$1k-Colonial Federal Savings Bank4 Year IRA (Traditional, CESA, Roth)
3.00%$1k-Colonial Federal Savings Bank27 Month IRA (Traditional, Roth, CESA)
2.75%$1k-Colonial Federal Savings Bank17 Month IRA (Traditional, Roth, CESA)
Rates as of May 21, 2019.

As stated on the Deposit Rates page, the Early Withdrawal Penalty reads as follows:

180 Days simple interest on certificates with terms greater than one year.

Availability

Headquartered in Quincy, Massachusetts, Colonial Federal Savings Bank’s tag-line is “Your neighborhood bank!” The Bank’s "neighborhood" is Norfolk County, but according to CSR, any Massachusetts resident is welcome to apply, “if they’re willing to come into a branch.” As always, calling ahead to confirm your eligibility before traveling any distance is prudent.

Opening any type of account with Colonial Federal must be done at any of four Massachusetts branches located in Holbrook, Quincy (2), and Weymouth.

Colonial Federal’s online banking platform is currently devoted to account management and bill payment services.

Bank Overview

Colonial Federal Savings Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 0.00% (excellent, and not a typo) based on December 31, 2018 data. In the past year, Colonial Federal has increased its total non-brokered deposits by $226,000, an above average annual growth rate of 0.09%. Please refer to our financial overview of Colonial Federal Savings Bank (FDIC Certificate # 28481) for more details.

As the only remaining mutual savings bank founded in the City of Quincy, the Bank was originally established in 1889 as the Colonial Federal Savings and Loan Association. The Colonial Federal Savings Bank rebrand occurred 95 years later. Living up to the “Your Neighborhood Bank” slogan, Colonial Federal participated in the 11thannual Credit for Life Fair in March. More than 200 Quincy High School and North Quincy High School students attended, learning about budgeting and expense management from a variety of local banks and businesses.

How the CD Compares

When compared to 308 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available within the Bank’s market area, Colonial Federal Savings Bank's 4-year CD APY currently ranks first.

Interest RateLength of TermCredit Union/Bank
3.25% APY4-Year CDColonial Federal Savings Bank
3.20% APY48-59 Month CDFirst National Bank of America
3.15% APY48-Month CDMain Street Bank (MI)

The above rates are accurate as of 5/9/2019.

To look for the best CD rates, both nationwide and in your state, please refer to our CD Rates Table page.

Related Pages: Boston CD rates, 1-year CD rates, 5-year CD rates

Comments
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111   |     |   Comment #1
Ken Tumin's article states "Following my “Special Rate Rule of Three,” Colonial Federal is offering one very competitive rate [the 4-year CD, 3.25%], one good rate [the 27-month, 3.00%], and one not-so-special rate [the 17-month, 2.75%]."
This is true, but somewhat ironic. In a more historically normal interest rate environment, this relative spread among these 3 CD terms would be common among many banks, but in the current rate environment it is unusual because current long-term rates are flattened. Thus their 4-year rate sticks out a bit.
Colonial Federal Savings Bank (MA) Ups 27-Month CD

UPDATE 5/14/2018: No longer available.

Deal Summary: 27-month CD, 2.70% APY, $1k minimum deposit.

Availability: Market area is primarily Norfolk County, Massachusetts.

Earlier this week, Colonial Federal Savings Bank (Colonial Federal) added 190 bps points to its 27-month CD, giving it a new, competitive 2.70% APY. The minimum deposit is $1k, with no stated balance cap.

The 27-month CD is also available as an IRA (Traditional, Roth, and CESA), earning the same APY with the same funding requirements.

The 2.70% APY is, by far, the highest rate the...

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