EBSB Direct Brings Back High-Yield Savings

It’s back. After being available for about a month starting in October, EBSB Direct’s High-Yield Statement Savings (HYSS) account is again part of the nationally available product line. The HYSS still offers 2.50% APY on balances between $5k and $1m. Balances greater than $1m earn 0.25% APY, with balances below $5k earning no interest.

As stated on the promotion page, a minimum $50 of new money is required to open an HYSS and “existing customers must deposit additional money from another financial institution.” Neither the promotion page or the Agreements and Disclosure mentions a minimum dollar amount for new funds for the HYSS, but according to CSR, existing customers must bring at least $5k of new money to qualify for the 2.50% APY.

Thanks to DA readers, enelrad1123 and Bowman, for their Forum posts about the return of the High-Yield Statement Savings.

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.

Availability

Headquartered in Boston, EBSB Direct (a subsidiary of East Boston Savings Bank) has no brick-and-mortar branches and operates only as an internet bank. While U.S. resident aliens were able to open an account online in the past, the promotion page reads,

You must be a U.S. Citizen to open this account.

Opening and funding a High-Yield Statement Savings account must be done online.

In early November, the brick-and-mortar East Boston Savings Bank version of the HYSS could only be opened in-branch. East Boston Savings Bank is now offering the High-Yield Statement Savings online, earning the same 2.50% APY.

If you are not an existing customer of East Boston Savings Bank you must be a U.S. Citizen and reside in Massachusetts, New Hampshire or Rhode Island to open an account with us.

Note: EBSB Direct has not only brought back the High-Yield Statement Savings, but it’s still using its problematic online application. If you click on the “Open Account” button on the EBSB Direct High-Yield Statement Savings promotion page, it leads to an online application that displays the East Boston Savings Bank logo. The first line reads, “Thank you for choosing East Boston Savings Bank High Yield Statement Savings.” No mention of EBSB Direct. According to CSR, we shouldn’t be concerned, as the online application (like the Sorting Hat in Harry Potter) will figure out who is an EBSB Direct customer and who is an East Boston Savings Bank customer.

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 1.14% (excellent) based on September 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $799.4 million, an excellent annual growth rate of 24.89%. Please refer to our financial overview of EBSB Direct/East Boston Savings Bank (FDIC Certificate # 33510) for more details.

While EBSB Direct is a relatively new institution (2009), East Boston Savings Bank (founded in 1849) can traces its beginnings 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.

Nearly 170 years later, following organic growth and mergers with Mt. Washington Cooperative Bank (2010) and Meetinghouse Bank (2017), East Boston Savings Bank is the sixth largest bank in Massachusetts, holding assets in excess of $5.7 billion.

How the High-Yield Statement Savings Compares

When compared to 209 Savings Accounts tracked by DepositAccounts.com that are nationally available, EBSB Direct's High-Yield Statement Savings APY currently ranks first, regardless of minimum balance requirements.

The above rates are accurate as of 12/12/2018.

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