East Boston Savings Bank Brings Back High-Yield Savings


Deal Summary: High-Yield Statement Savings, 2.50% APY on balances between $5k and $1m, $50 minimum opening deposit, new money.

Availability: The Greater Boston metropolitan area.

If “High-Yield Statement Savings” sounds familiar, it’s because that’s the name of a short-lived account offered by EBSB Direct in October. Lasting about a month, it was abruptly removed from the product line at the beginning of November. East Boston Savings Bank (EBSB), the parent bank of EBSB Direct, has revived an in-branch version of the High-Yield Statement Savings (HYSS) account, which earns 2.50% APY on balances between $5k and $1m. Balances greater than $1m earn 0.25% APY, with balances below $5k earning no interest. The minimum opening deposit is $50 of new money.

According to the Savings page, new money is required to open an HYSS and “existing customers must deposit additional money from another financial institution.” There is no mention of what the minimum amount of additional new money is required for existing customers, but according to CSR, existing customers must bring at least $5k of new money to qualify.

The Savings page also has a link to the Agreements and Disclosure document, which contains some basic information about the HYSS, but there’s nothing about the minimum amount of additional money from existing customers.

DIF Deposit Insurance

East Boston Savings Banks offers more 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. The DIF has been insuring deposits since 1934.

As stated on the FAQ page,

As a member of both the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF), our bank provides full insurance for its customers' deposits and accrued interest without limit or exception. Each depositor is insured by the FDIC to at least $250,000. All deposits above the FDIC insurance amount are insured by the DIF.


Headquartered in Boston, East Boston Savings Bank’s primary market area is the Greater Boston metropolitan area.

When I wrote about the now-defunct nationally available High-Yield Statement Savings account at EBSB Direct, EBSB also had an online application for residents of Massachusetts, New Hampshire, and Rhode Island. This latest version of the HYSS account can only be opened in-branch by U.S. citizens at any of 35 Massachusetts branches located in Allston, Belmont, Boston (9), Brookline (2), Cambridge, Danvers, Dorchester (3), Everett, Lynn, Medford, Melrose, Peabody, Revere (2), Roslindale, Saugus (2), Somerville, South Boston (3), Wakefield, West Roxbury, and Winthrop.

Bank Overview

East Boston Savings Bank has an overall health rating of "A+" at DepositAccounts.com, with a Texas Ratio of 1.15% (excellent) based on June 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $885.4 million, an excellent annual growth rate of 28.66%. Please refer to our financial overview of East Boston Savings Bank (FDIC Certificate # 33510) for more details.

Founded in 1849, East Boston Savings Bank’s rich history began in the Noddle’s Island area, a center of commerce highlighted by shipbuilding, carpentry, sugar-refining, and iron foundries. Those early merchants and world-famous shipbuilders were the leaders in the formation of East Boston Savings Bank.

On January 17, 1849, the first official business day of the Bank, 57 people deposited $2,999 at the Bank’s Maverick Square Office. The next day, the Bank’s Board of Investment voted to purchase 15 shares of stock in the Merchant’s Bank of Boston and so began over 16 decades of growth, prosperity and prudent asset management for the merchants and residents of East Boston.

169 years later, following growth in size and scope (including a merger with Mt. Washington Cooperative Bank in 2010 and Meetinghouse Bank in late 2017), East Boston Savings Bank is currently the sixth largest bank in Massachusetts, holding assets in excess of $5.6 billion.

How the High-Yield Statement Savings Compares

When compared to 396 Savings Accounts tracked by DepositAccounts.com that are available within the market area, East Boston Savings Bank’s High-Yield Statement Savings APY currently ranks first, regardless of minimum balance requirements.

The above rates are accurate as of 11/9/2018.

Looking for the best Savings Account rates, both nationwide and state specific? Please refer to our Savings Account Rates page.

Related Pages: Boston savings accounts, savings accounts

  |     |   Comment #1
Nice rate for a liquid savings account, but a potential "Gotcha" with the rate tiers. 0% rate with less then 5,000 balance), but this deal is clearly aimed at individuals with large amounts to deposit. Based on their brief history, we should see this offer again pulled after they reach their desired funding level.....hopefully they will not also drastically drop the rate when they do so.
  |     |   Comment #2
Without guarantees for how long they will pay the interest rate quoted, they can turn off and then turn on again for new customers with specified deposit levels. Won't do business with them. Just think about all the additional earnings they have even if they drop the rate for 2 weeks. People scurry around to move funds out, lose whatever the lowered rate is and move it someplace else. In the meantime, EBSB starts a new offer and it might become wash, rinse and repeat to the determent of the people who opened accounts with them in good faith. After all, we are supposed to be in a rising interest rate environment.
  |     |   Comment #3
If you want guarantees from the bank, stick with CDs.

"Good faith" " What about the the banks and CUs that issue CDs in "good faith" and the depositors abandon them in a flash when just for a couple of tenths higher percentage rate at another bank or CU? "Good faith" used to apply to both sides.
  |     |   Comment #8
Back when I first started banking, CDs were not treated like passbook accounts. When you took out money before maturity in a CD, you paid the price. It was treated like a contract, if you reneged , then you paid the price.
  |     |   Comment #10
Agreed, if you open 5 year CD then you should plan on keeping it there 5 years unless you have huge emergency or you die.
  |     |   Comment #16
@123. Disagree. In a rising rate environment there are often times when it makes good financial sense to break an old CD. For example, earlier this year I broke a 2.25% CD that had 4 years left to maturity to move into another long term CD that was paying 4% with a net gain of about $3,000 by making the switch and taking the EWP.

Ken's tool below has been quite helpful in determining when to make a move out of an underperforming CD and the gain from making such a move:

  |     |   Comment #4
Good bank, easy to work with. Waits for customer support tend to be long but people are helpful. One drawback on the high yield account: they hold funds for a long time, though interest is of course paid. But until you have account for over 30 days, you will not have access to your deposit.
To #4
  |     |   Comment #6
There is no drawback, they use your funds to buy treasuries and to create longer floats and then they take the profit of the top.
If the money float is 30 days and over the banks receive extra interest from the notes and the bonds they sweep the money into.
There is no good or bad bank(s), they try to make a buck as well as we do. Some banks use trickeries like add on CDs, special new account required, new money only, long holds, slow transfers, limited ACH amounts and so on.
  |     |   Comment #9
Not sure if what you said about deposit availability is entirely accurate. I opened the account and a few days later had a direct deposit added to it. The direct deposit amount was shown as immediately available.
The direct deposit
  |     |   Comment #12
#9, you are mixing apples and oranges, the direct deposit comes in from external source and has nothing to do with ESBS, now try to pull money from ESBS from any of your external accounts and tell us about your experience.
  |     |   Comment #15
#12 - My Savings account is not one month old. I went to the Transfer menu on EBSBDIRECT.COM and set up to send out to another account at an external bank some money right away and it accepted it. So I "pushed" some money out without any problems. I am pretty sure that if I "pulled" some money from EBSBDIRECT.COM from another bank's transfer menu, it would be done without any problems. When you say the direct deposit has nothing to do with EBSBDIRECT.COM, of course that is true. HOWEVER, the funds are deposited into EBSBDIRECT.COM under my account number so the money is under EBSBDIRECT.COM control.
  |     |   Comment #20
The savings account is not listed on the website as of November 11 (2 AM) ET.
  |     |   Comment #21
Take another look after scrolling down. It is there , but there is no button to apply because you have to apply in person.
  |     |   Comment #22
Sorry, I should have quoted Ken above, it is “in branch” not in person, but I took that to mean, no online application.
  |     |   Comment #25
Thanks for the clarification. I went to the non-online website (EBSB.COM) and it makes reference to a High Yield Statement Savings account at 2.5% for balances between $5K up to $1 million. However, when you click on the open account icon, that account is not listed. Only the regular Statement Savings account at 0.1% is listed as account selection options.

  |     |   Comment #5
No problems with this account. But be prepared for a few “bumps in the road” in terms of applying for and opening it. And, as another person commented, your hold times in getting a representative on the phone can be extensive.
  |     |   Comment #7
Opened account with no problems when they offered this nationally. Took all my funds out of Norther Direct with the exception of 5k so my ND account is open and guarantees 2.26% till 6/19. Should ESEB reduce their rate or someone else offers a rate of 2.75% I will move the funds out of ESEB.
  |     |   Comment #11
I am still getting the 2.5% rate for the account I opened in Oct. Previously the bank's promotion rates were not extended to current account holders unless a new account was established. I hope that they have abandoned that policy which is not necessarily a deal breaker, but certainly an annoying inconvenience to loyal account holders.
  |     |   Comment #13
@RZ: I opened up my account at the Dorchester branch about a month ago and as of now my rate has gone down to 2.47%. At that same visit I had asked if the rate would go down quickly for new account holders and the CSR assured that wouldn't happen. Your fears are correct. Beware!!
  |     |   Comment #14
@cdinvestor, you are confusing APR with APY. With an APR of 2.47% you are getting their advertised APY of 2.5% at 12 months.
deplorable 1
  |     |   Comment #17
Here is a great tool for figuring out the APY from the APR:
  |     |   Comment #18
Thanks RZ #14. That very thought did cross my mind too after posting so I actually visited my local branch this morning... and spoke to the same CSR. She said that the actual rate has apparently changed to 2.47% and was 'NOT' APR. I asked why would EBSB do such a thing after one month at 2.50% and then immediately lower the rate. She said nothing and kind of looked away. I will call EBSB and speak to someone different on monday because this CSR did seem incompetent.
To #18
  |     |   Comment #23
#18, have a look at p.13 in the Agreements and Disclosures:
You'll see that the interest rate (APR) is 2.47% and the APY is 2.50%.
Since the document is dated Oct. 2018, and it's linked on the bank's website to explain the current rate as of Nov. 8, I gather the rate has not changed. The CSR must have been confused.
  |     |   Comment #24
The APY is still 2.50%, The interest rate is 2.47%. I have dealt with this bank for around 10 years and my experience with them is that they don't drop rates. What they like to do is offer a new product at a higher rate. And in a rising rate environment like we are in right now you should not be worrying about rate dropping, more when/where you will move money when you find a better deal
  |     |   Comment #26
CDInvestor, Take a look at any CD or savings account you have under the account details if you want to see the actual interest rate (APR). Companies advertise the APY, not the APR. All the 2.25% APY deposit account pay 2.23% (a 2.25% APY), it is because the APY calculates interest on the interest you earn (compounding interest). Pretty fundamental principle in any CD or deposit account. 2.47% has been the APR since day 1 when this account was offered, and adds up to the advertised APY of 2.5%.. Now I am turning my head and looking away also.
  |     |   Comment #27
Thanks all for your helpful explanations. I spoke to a different CSR today who knew the ropes and agreed with you all. The incompetent CRS is being investigated because she also led me astray in several other ways. Thanks again.
  |     |   Comment #28
I'm noticing a rate drop on my previous 2.50% APY. It previously showed 2.47% interest and 2.50% APY. Now it's saying 2.37%. Can anyone else confirm? It seems sometimes in June EBSB lowered their 2.50% High Yield Savings account rate.
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