EBSB Direct Unveils 14-Month CD Special (2.20% APY)


Deal Summary: 14-month CD Special, 2.20% APY, $1k minimum deposit, limited-time offer. Direct Money Market Special, 1.57% APY on balances between $10k and $2m.

Availability: Nationwide (internet bank)

EBSB Direct’s product line is structured differently than that of most other banks: rather than maintaining a relatively consistent number and type of products, EBSB Direct chooses to run limited-time specials. It’s like that box of chocolates – you never know what you’re going to get.

When I wrote about EBSB Direct three months ago, the Bank was offering three nationally available CDs, which were removed from the product line in early March. The latest CD is a limited-time 14-month CD Special (2.20% APY). The minimum opening deposit is $1k, with no stated balance cap. The CD Special is only available as a personal account and no IRA is offered.

2.20%$1k-EBSB Direct14 Month CD Special
Rates as of April 20, 2018.

According to the promotion page,

Upon maturity, 14-month CD renews to the then current 18-Month CD interest rate and term.

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the maturity date as follows: terms over 12 months to 36 months the penalty will equal 6 months interest on the amount withdrawn.

Direct Money Market Special

From 2010 to 2016, EBSB Direct offered a Money Market account with rates that ranged from 0.80% APY to 1.30% APY. Beginning in May 2016, EBSB Direct started a dynasty of Money Markets.

  • May 2016 - Money Market Special 2 (1.08% APY, $10k+) introduced; original Money Market (0.92% APY) maintained.
  • October 2016 – introduction of Money Market Special 3 (the successor to the MMS2), with tiered APYs.
  • December 2016 - EBSB Direct stops accepting new applications for MMS3.
  • June 2017 - MMS3 again available, with the same rate tiers offered in October (1.25% APY, $10k-$2m).
  • September 2017 - Money Market Direct (1.39% APY on balances of $50k+) unveiled.

That brings us to the latest offering, the Direct Money Market Special, which earns 1.57% APY on balances of $10k-$2m. Balances of $2m+ earn 0.80% APY, while balances between $10 and $10k earn 0.50% APY.

1.57*%$10k$2mEBSB DirectDirect Money Market Special
OTHER TIERS: 0.50% $10 - $10k | 0.80% $2mm+
Rates as of April 20, 2018.

According to the promotion page, the minimum opening deposit is $2.5k, and requires

New money or existing customer must deposit additional
money ($10k minimum) from another financial institution.

When I checked the Agreements and Disclosure brochure for more information, I was surprised to see the following at the top of the page,

TRUTH IN SAVINGS Money Market Special 3 Account

To my eye, the supporting documentation hasn’t been updated for the new Direct Money Market Special (even though it is dated March 2018) or someone just forgot to change the name. After a very frustrating conversation with CSR, I was able to confirm that 1) the Direct Money Market Special is indeed a new product, as of mid-March; 2) the information on the Agreements and Disclosure is correct; and 3) it should be titled Direct Money Market Special Account and not Money Market Special 3 Account.

DIF Deposit Insurance

EBSB Direct 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 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 a subsidiary of East Boston Savings Bank and has no brick-and-mortar branches. While U.S. resident aliens were able to open an account online in the past, the online application now reads,

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 Money Market Direct 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.

According to the CSR, a beneficiary can be designated in the online application. When I asked about how many beneficiaries can be designated, the CSR said she had to check on that. I was then disconnected. If you find out the number of beneficiaries that can be designated, please leave a comment.

Bank Overview

As an internet division of East Boston Savings Bank, EBSB Direct operates under the Bank’s FDIC Certificate 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 1.27% (excellent) based on December 31, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $165.54 million, an excellent annual growth rate of 5.46%. Please refer to our financial overview of EBSB Direct/East Boston Savings Bank (FDIC Certificate # 33510) for more details.

While EBSB Direct was established in 2009, East Boston Savings Bank (established in 1849) 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 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), East Boston Savings Bank is the sixth largest bank in Massachusetts, holding assets in excess of $5.2 billion.

How the CD Special Compares

When compared to the 208 similar length-of-term CDs tracked by DepositAccounts.com that required a similar deposit and are available nationwide, EBSB Direct's 14-Month CD Special APY currently shares the top spot with iGObanking and BankPurely’s 1-year CDs.

Interest RateCD Length of TermCredit Union/Bank
2.20% APY14-Month CD SpecialEBSB Direct
2.17% APY12-Month CDFirst Internet Bank
2.15% APY1-Year CDLive Oak Bank

The above rates are accurate as of 3/28/2018.

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

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

rzelman   |     |   Comment #1
I would not tie up money for 14 months for just 20 basis points more and am frustrated with their MM policy which forces you to create a new account, add additional funds, new ACH links, and has restrictive tiers and fees. Time to move on especially since my mother account at Vanguard Prime MM is now yielding 1.66%
111   |     |   Comment #2
It's telling me 1.67%.....
Lakewood   |     |   Comment #3
Vanguard Prime MM, minimum $3000, 1.67% is outstanding, exp ration 0.l6%. I only have Vanguard Mutual Funds account, and I checked w/my Fidelity Brokerage customer service, and their equal Money Market requires a 100K minimum. Too bad, or any ideas for parking money in a rising rate environment?
DCGuy   |     |   Comment #4
For those looking for tax free liquid investments, the Vanguard fund is currently 1.22% with a $3K minimum. For those who have a TD Ameritrade account, you can invest in the Federated Municipal Obligations Fund (normally is $500K minimum, but has no minimum for brokerage customers) that has a 1.19% 7-day yield.
DCGuy   |     |   Comment #5
An update to those considering tax free liquid investments, the Vanguard Municipal MMF is now yielding 1.25% ($3K minimum). The Federated Municipal Obligations Fund (for those with TD Ameritrade accounts have no minimum) is now yielding 1.22% (no transaction fee). Deutsche Tax Exempt Money Fund is yielding 1.23% ($1K minimum). Fidelity and Schwab also offer municipal MMF with yields comparable to these rates, but they have very large minimum amounts ($1 million).
DCGuy   |     |   Comment #6
A disclaimer about Schwab. It does offer a municipal MMF yielding 1.19% with no minimum if you open a brokerage account with them. The $1 million minimum Schwab fund offers a slightly higher rate (1.34%). Note that the yields constantly change and one fund could change its relative position with other funds daily.
rzelman   |     |   Comment #7
Fidelity has numerous MM funds and comparing them on their website is not particularly user friendly. I did speak to a CSR who advised me that the Premier MM with the highest rate is available for IRAs with a minimum of 20K in assets. While I don't have the 100K to get that fund in my taxable account he directed me to another that paid only 15 basis pts less. Their best yielding unrestricted MM fund is unfortunately closed to new investors. That is the first time that I have every encountered that with a MM fund.
Lakewood   |     |   Comment #8
rzelman: good post! I now see that in my ira accounts, I can park $10K (minimum) in FZDXX, and get 1.65%, instead of seeking brokered CDs for the 'cash' portion of those accounts.
rzelman   |     |   Comment #9
You are correct I believe the minimum for IRA is 10K not 20K, 100K for a non IRA account.
Competitive Rates on Money Market and 30-Month CD at EBSB Direct
Deal Summary: Money Market Direct, 1.39% APY ($50k+), 0.20% APY ($5k-$50k), minimum $5k opening deposit of new money. 30-month CD, 2.21% APY, $1k minimum deposit, new money, limited-time offer.

Availability: Nationwide (internet bank)

From 2010 to 2016, EBSB Direct offered a Money Market account with rates that ranged from 0.80% APY to 1.30% APY. In May 2016, EBSB Direct introduced its Money Market Special 2 (1.08% APY, $10k+), while still maintaining the original Money Market (0.92% APY). In October 2016, EBSB Direct unveiled its Money Market...

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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...

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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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