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

    1.25% APY – $10,000 -$1,999,999.99 balance

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

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.”

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 CDs

EBSB Direct is also offering three CDs: 16-month (1.41% APY), 25-month Bump Up (1.41% APY), and 48-month (1.50% APY). I wrote in greater detail about these CDs in a May blog post when they became available nationwide. In the past five months, the 16-month CD has experienced a 6 basis point increase, while the 25-month Bump Up CD’s APY has remained constant and the 48-month CD APY has plummeted 63 basis points.

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 internet only bank and has no branch locations. Any U.S. Citizen or U.S. Resident Alien is eligible to apply for an account with EBSB Direct.

Opening and funding the MMS3 must be done online. In the past, EBSB Direct’s market area had been limited to the Northeast, but according to CSR, that has recently changed with all of EBSB Direct’s product line available nationally.

Bank Overview

EBSB Direct (FDIC Certificate # 33510) has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 6.01% (excellent) based on June 30, 2016 data. In the past year, EBSB Direct has increased its total deposits by $500.66 million, an excellent annual growth rate of 19.6%. Please refer to our financial overview of EBSB Direct for more details.

Established in 2009, EBSB Direct is an internet subsidiary of East Boston Savings Bank (established 1849), which can traces 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.

165 years later, following growth in size and scope (including a merger with Mt. Washington Cooperative Bank), East Boston Savings Bank is the largest community bank in Suffolk County, holding assets in excess of $3.8 billion.

How the Money Market Special 3 Compares

When compared to the 168 Money Market Accounts tracked by DepositAccounts.com that are nationally available, EBSB Direct's Money Market Special 3 APY shares the top spot with All America Bank’s Mega Money Market ($35k max) and Redneck Bank’s Mega Money Market Account ($35 max).

The above rates are accurate as of 10/11/2016.

To search for nationwide Money Market rates and Money Market rates in your state, please refer to the Money Market rates section of DepositAccounts.com or our Rates Map page.

DCGiy   |     |   Comment #1
It looks like they created a Money Market Special 3 (up to 1.25%) in addition to Money Market Special 2 (up to 1.08%)?  They appear to have added a savings account at 0.88%  The original Money Market account rate is still 0.92%.  Not sure the reason for the multiple versions of Money Market accounts.
DCGuy   |     |   Comment #2
Easy way to make your existing money in the bank as "new money".  Transfer it to another bank, wait for a while, and then deposit it to your new account to get the higher rate.
scottj   |     |   Comment #3
Don't even need to do that. I had the original MM and opened the MM2, transferred money from MM right into. Now I just opened MM3 and transferred a large  amount into it. Strange that they say new money but when opening they give you the option to transfer from an existing account with them?
steve   |     |   Comment #4
I called them. $25 fee if close account within 6 months. But they do not guarantee the 1.25% to last at
least 6 months.
scottj   |     |   Comment #5
Been doing business with East Boston for a number of years and they have a good history of holding rates. This starting new Money Market specials is something new with them so I don't think we will see them drop rates, just either stop offering or create new account with new rate. Figure even if they lower the rate it's min is only $2,500 to avoid fee so just keep open till 6 month up
Ted Holland
Ted Holland   |     |   Comment #6
Thanks for the post.  In order to get the 1.25% rate it needs $10K+ balance.
Not sure the bank has feature for account holder to setup external Links, or need to send in checks by postal mail.
scottj   |     |   Comment #7
You can fund the account by linking an account at an outside bank. Also can add multiple external accounts.
Steve H, Cambridge
Steve H, Cambridge   |     |   Comment #8
Anyone who opens a new Money Market Account should be aware that funds you deposit, even electronically from another bank by ACH, won't be available for 9 business days. That's a long time and in my view, unnecessary and consumer-unfriendly. Although it may be permitted by the Fed (and I'm not sure EBSBDirect's funds policy actually does comply,) there's no reasonable justification for holding your money that long. Beware!
RichReg   |     |   Comment #9
Why is that such a big deal? If your plan is to deposit money, what's the need to turn around and withdraw it 2 days later? Besides, I'm pretty sure you'll still earn interest...regardless of ACH processing time.
DCGuy   |     |   Comment #10
The Money Market Special 3 account at 1.25% is now offered again on the website. Also a 19 month CD rate of 1.61% is also available. New money only. The 0.88% savings account still remains.
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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Top Money Market Account Rate at EBSB Direct - MA Only

EBSB Direct has recently increased the high-tier rate of its money market account to a very competitive level. It's now 1.17% 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 3/4/2013. Thanks to DA member scottj who posted on this news in this forum thread.

One thing that has changed with EBSB Direct is that they are now...

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