EBSB Direct Reopens Money Market Special 3


Deal Summary: Money Market Special 3, 1.25% APY ($10k min/$2m max), minimum $2.5k opening deposit of new money; 19-month CD, 1.61% APY, $1k minimum deposit of new money.

Availability: Nationwide (internet bank)

In October, EBSB Direct introduced its Money Market Special 3 (MMS3), the successor to its Money Market Special 2, which had been added to the product line in May. In the beginning of December, EBSB Direct stopped accepting applications for the MMS3. As of this week, the MMS3 is available again, with the same rate tiers offered in October.

  • 0.00% APY – Less than $10 balance
  • 0.25% APY – $10-$9,999.99 balance
  • 1.25% APY – $10,000 -$1,999,999.99 balance
  • 0.58% APY – $2,000,000 and above balance
1.25*%$10k$2mEBSB DirectMoney Market Special 3
OTHER TIERS: 0.25% $10 - $10k | 0.58% $2mm+
Accounts mentioned in this post. Rates as of August 17, 2017.

Note: the MMS3’s fine print states "New money only," yet there is no mention of new money in the Agreements and Disclosure brochure. According to CSR, MMS3 does require new money, but existing EBSB Direct customers are “not prohibited from opening a Money Market Special 3 account.”

Having established the pattern of MMS2 and MMS3, I was curious why this new offering wasn’t called Money Market Special 4. CSR stated that since the rate tiers were the same as offered on the original MMS3, this really isn’t a new product, just an older product made available again. Fair enough.

I then asked if owners of the “older model” MMS3 could open the latest version; CSR said that it was possible, and “would be determined on a case-by-case basis.” I asked because of the recent trend of lowering rates on products which are no longer available to new customers, and then offering a new similar product with competitive rates to bring in new customers. When asked if the rate on MMS3s opened prior to December had dropped, CSR stated, “I can’t answer that question.” That information is only available to MMS3 account holders.

EBSB Direct’s Agreements and Disclosure brochure provides a great deal of information about the MMS3 account, including,

COMPOUNDING AND CREDITING – Interest will be compounded monthly and will be credited to your account monthly. If you close your account before interest is credited, you will receive the accrued interest.

MINIMUM BALANCE REQUIREMENTS – You must deposit $2,500.00 to open this account. If you maintain a $2,500.00 minimum daily balance during the statement cycle, the $8.00 monthly maintenance fee will not be assessed. You must maintain a minimum daily balance of $10.00 in the account each day to obtain the disclosed annual percentage yield.

FEES AND CHARGES - $15.00 fee for each transfer in excess of six during statement cycle.

Nationally Available CD

EBSB Direct is currently offering a 19-month CD, earning 1.61% APY. I say “currently” as EBSB Direct has a history of unveiling limited-time CDs, which last for a few months and then are withdrawn. The 19-month CD requires $1k of new money to open, and is limited to personal accounts.

1.61%$1k-EBSB Direct19 Month CD
Accounts mentioned in this post. Rates as of July 20, 2017.

As stated in the Agreements and Disclosures document, the Early Withdrawal Penalty reads as follows:

A penalty will be imposed if you withdraw any of the principal before the maturity date as follows: terms over 12 months to 36 months the penalty will equal 6 months interest on the amount withdrawn.

DIF Deposit Insurance

For those with large savings, EBSB Direct offers more protection 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 EBSB Direct's About Us page,

As a member of both the Federal Deposit Insurance Corporation (FDIC) and the Deposit
Insurance Fund of Massachusetts (DIF), all of your deposits are insured in full. That means that every dollar you have on deposit with East Boston Savings Bank is fully insured without limit.


Headquartered in Boston, EBSB Direct is an subsidiary of East Boston Savings Bank, and as such, has no brick-and-mortar branches. While U.S. resident aliens were able to open an account online in the past, the first page of the online application now states,

If you are not an existing customer of East Boston Savings Bank,
you must be a U.S. Citizen to open an account with us.

Opening and funding the MMS3 and/or the CD must be done online. In the last year, EBSB Direct began to offer its product line nationwide; prior to that change, its market area had been limited to the Northeast.

Bank Overview

As an internet subsidiary of East Boston Savings Bank, EBSB Direct operates under the Bank’s FDIC Certificate (# 33510) and shares its financial history.

EBSB Direct/East Boston Savings Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.46% (excellent) based on March 31, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $313.81 million, an excellent annual growth rate of 11.38%. Please refer to our financial overview of EBSB Direct/East Boston Savings Bank for more details.

While EBSB Direct was established in 2009, East Boston Savings Bank (established 1849) can trace its beginning to 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 $2,999.00 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.

168 years later, following growth in size and scope (including a merger with Mt. Washington Cooperative Bank), East Boston Savings Bank is the eighth largest bank in Massachusetts, holding assets in excess of $4.5 billion.

How the Money Market Special 3 Compares

When compared to the 176 Money Market Accounts tracked by DepositAccounts.com that require a similar minimum balance and are nationally available, EBSB Direct's Money Market Special 3 APY currently ranks fourth

To look for the best Money Market Account rates, both nationwide and state specific, please refer to our Money Market Account rates table or our Rates Map page.

How the CD Compares

When compared to the 147 similar length-of-term CDs tracked by DepositAccounts.com that required a similar deposit and are available nationwide, EBSB Direct's 19-Month CD APY currently ranks second.

The above rates are accurate as of 6/30/2017.

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

Related Pages: Boston money market accounts, money market accounts, 1-year CD rates, nationwide deals, Internet banks

111   |     |   Comment #1
"When asked if the rate on MMS3s opened prior to December had dropped, CSR stated, “I can’t answer that question.” That information is only available to MMS3 account holders."

Well, I CAN answer that question, and will. They did lower that rate, after about 6 months. Not greatly, but month 7 was less than 6, AND 8 was less than 7. Not a hopeful trend in a rising rate environment, where even their original 1.25% was no longer anything to write home about. So I bid them adieu.
Martin   |     |   Comment #2
I had account with them since last November/December month and the rate was 1.25% APY, yesterday I closed it and the current rate in my account showed as 0.99%. Avoid this bank, full of crooks. They never announce rate changes, they just do it at will and you would never know, unless you look your monthly statement, which lags for 30 days.
bozoooo   |     |   Comment #4
It is also online. The day after the last interest credit (the 15th of the month). Under Account Overview.

Overall, not a good experience. Similar with Popular Direct, which uses the same bank platform.
Att   |     |   Comment #5
I know of no bank that gives you notice when a savings account rate changes. I have an account now with dollar direct. At least a couple times a week I check the balance and rate online. They are famous for dropping rates. If they do my money goes else where.
jim bob
jim bob   |     |   Comment #6
The problem with places like Popular Direct and EBSB is that they do not prominently display minimum required balance, monthly fees, and so on. I found the best way to get that data was to go back to the original post on Deposit Accounts.

Also, to cancel both Popular Direct and EBSB, I ach'd all cash out, the day of or the day after interest was credited, to avoid whatever fees might otherwise be imposed.

GS Bank is not the absolute highest rate, but it is a long term good contender and easy to understand.
rzelman   |     |   Comment #3
The MM3 interest rate had drifted down to 1.17% but today I see that the original 1.24% rate has been restored
#7 - This comment has been removed for violating our comment policy.
DCGuy   |     |   Comment #8
Some notes about the account. ACH direct deposits are not considered activity, so after two years, the account is placed in dormant status. I asked what is considered activity and was told that a branch office visit was or some kind of communication with the bank. The "online only" account charges you to do in-branch transactions. So I had to send them a message to get the dormant status removed. Also, I tried to do a funds transfer to an external bank that I linked to the savings account. I get an online message that they need to send me a PIN number (4 digits) to my home phone. I click on screen to do that and get a call, but there is dead silence and a beep sound is heard every few seconds. I did receive the four digit PIN number on screen, but the phone call does not say to enter the number using the phone pad.
DCGuy   |     |   Comment #9
The automated phone call to provide the PIN to enter on the screen appears to have been corrected now. I did get an automated call with a voice telling me to enter the PIN number on the phone keypad. I also asked CSR if getting cash through a ATM debit card would be considered activity for the account. Her response was that it would not. I thought all withdrawals made either in person or on an ATM would be considered customer activity to an account. Using an ATM card for a transaction is not the same as automated withdrawals or transfers from your account. Their criteria for what constitutes customer activity appears to be questionable.
???   |     |   Comment #10
Not timely but usually a paper check deposit works
DCGuy   |     |   Comment #11
I went back and dug through my statements from two years ago and found what was considered the last customer activity to the account. I was redeeming a CD account where I had it deposited to the MM account when it matured. So that was the last transaction considered to be customer activity. I did have funds transferred to an account that I opened at another bank later, but that apparently does not qualify. As for paper check deposits, I did that many years ago. They charge a service fee to process that. This is an online "only" account, so branch transactions are not free.
DCGuy   |     |   Comment #12
I opened a 19 month promo rate CD so that should keep my MM account active for another two years. When the CD matures, the term changes to the 18th month CD rate which is much lower (currently at 0.5%). So I will close it and deposit back to the MM account when it matures in less than two years (and thereby keep it active for another two years).
EBSB Direct Introduces Money Market Special

UPDATE 12/3/2016: The Money Market Special 3 (1.25% APY) is no longer available for new applications.

Availability: Nationwide (internet bank)

In May, I wrote about EBSB Direct’s new Money Market Special 2 that earned 1.08% APY on balances between $10k and $1m. Five months later, EBSB Direct has brought the new, improved model: Money Market Special 3 (MMS3), which earns 1.25% APY on balances between $10k and $2m. MMS3’s rate tiers are structured as follows:

    0.00% APY – Less than $10 balance

    0.25% APY – $10-$9,999.99 balance...

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EBSB Direct Adds New Money Market Special 2
Availability: Nationwide (internet bank)

About two weeks ago, I wrote about EBSB Direct’s three competitive CDs, which are now available nationally. EBSB Direct has just added another nationally available product, its Money Market Special 2 (MMS2), which earns 1.08% APY on balances between $10k and $2m. MMS2’s rate tiers are structured as follows:

    0.00% APY – Less than $10 balance

    0.25% APY – $10-$9,999.99 balance

    1.08% APY – $10,000 -$1,999,999.99 balance

    0.58% APY – $2,000,000 and above balance

I don’t recall a Money Market Special 1,...

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EBSB Direct Now Offers Nationally Available CDs
Availability: Nationwide

Internet bank EBSB Direct has three competitive CDs: 16-month CD (1.35% APY), 24-month Bump-Up CD (1.41% APY), and 48-month CD (2.13% APY). The minimum opening deposit for all three CDs is $1K, with no maximum balance cap.

As stated in EBSB Direct’s Agreements and Disclosure document, the Early Withdrawal Penalty is as follows:

A penalty will be imposed if you withdraw any of the principal balance before the
maturity date as follows: terms over 12 months to 36 months the penalty will equal

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EBSB Direct Offers 13-month CD Online - Seven State Availability

Internet bank EBSB Direct is offering a 13-month CD (1.28% APY). The minimum opening deposit is $1K and there is no maximum balance cap.

This 13-month CD requires new money and is available only to residents of Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont.

As stated in EBSB Direct’s Agreements and Disclosure, the Early Withdrawal Penalty is as follows:

EBSB Direct Money Market Account

EBSB Direct’s Money Market Account (MMA) continues to earn 1.00% APY (rate in effect since October 31, 2013) on balances between $50K...

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Top Money Market Account Rate at EBSB Direct - New England and NY Only

EBSB Direct continues to have a top rate on its money market account. It has a 1.00% APY for balances of $50K to $1 million. For balances between $5K and $50K, the rate is 0.25%. No interest is paid for balances under $5K. New money is required. These rates are listed at the EBSB Direct home page as of 1/9/2014.

When I last reported on EBSB Direct, I was told that they were opening accounts only for residents of Massachusetts. Before that they had accepted customers from New England and New...

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