EBSB Direct Brings Back High-Yield Savings


UPDATE 1/10/2019: High-Yield Statement Savings no longer available.

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

Availability: Nationwide (internet bank)

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.


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.

Related Pages: Boston money market accounts, money market accounts, nationwide deals, Internet banks

  |     |   Comment #1
This is an outstanding rate of interest for liquid funds. I want to tell you why I'm not in. Then if I have missed something perhaps someone will put me right:

I'm not in at EBSB, with my funds remaining at Northpointe and at Northern at lower rates of interest, because both Northpointe and Northern have offered me a one year rate lock.

Rate locks are significant to me.  They betray seriousness of intent and reflect stability.
  |     |   Comment #4
Ever hear of transferring funds between banks once rates change?
  |     |   Comment #7
QED I have an EBSB account with most of my liquid cash. I also have a Northern Direct Account that I will keep open since it has the 2.26% floor until 6/19. If EBSB drops below 2.26% I just move my funds to Northern.
  |     |   Comment #18
EBSB rate lock people who get in. For example, I joined the first time they offered 2.5% APY and when they dropped the rate I was told my rate was locked until June 30, 2019. So now we can "put you right".
  |     |   Comment #24
"Rate locks are significant to me. They betray seriousness of intent and reflect stability."

Want a rate lock? Then open a one year CD at a higher rate. And once again I will repeat, rates are going up, maybe not as fast as we thought but still going up. So most likely this account will not be lowered. I have had accounts here for over 10 years and their history shows they are more likely to offer a new product at a higher rate than lower a current product. And while they say "new money" I have never had a problem funding new account from an older one
  |     |   Comment #2
Availability: Nationwide (internet bank)
  |     |   Comment #3
so which is it???

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
  |     |   Comment #6
Not True. I live in another NorthEast state and it was fairly easy to signup. Make sure you are looking for East Boston Savings Bank DIRECT (EBSBDirect)
  |     |   Comment #12
It is nationwide, but if you live in MA, NH, or RI, you have to go through East Boston Savings Bank. Unnecessarily confusing on the Bank's part.
  |     |   Comment #14
thanks carpline
  |     |   Comment #5
I wish AA/Redneck would hurry up & match it. Right now, I just do not have $5000 liquid. And come Jan 16th, I bet there will be a half dozen places with this rate. (WithOUT the minimum)
  |     |   Comment #8
Heard that. Spoke with a rep @ one of my banks on Monday;;she concurs with our forum that deposit rates aren't jumping up again anytime soon.

Used my last $25k for the United Bank MM invitation to get 2.5%, but pretty much dried out otherwise 'til Feb. Getting the feeling that MMs/Savings with great rates won't be the only ones disappearing in 2019; and I sure hope that the1-year stays in the 3% range for the next 2 months or so.
  |     |   Comment #9
The majority of my net worth is in liquid accounts. I only have two CDs opened since 2009 with minimal amounts. I am waiting for a major market correction or a big spike in interest rates before I make my next move to collect the debris from the fallout.
  |     |   Comment #10
Note that for the Savings account, balances between $50 and less than $5000 earn 0%. So you are giving the bank a free loan if you cannot keep the balance above $5000.
  |     |   Comment #11
What kind of correction are you expecting?

I've lost a ton being too conservative over the last 15 years. Not actual losses, but compared to just about any stocks or fund I would have bought have done.
  |     |   Comment #15
Any major impending implosion like back in 2008 and the market big drops in 2009. I went through the 1987, 2000-2003, and 2008-2009 big market swings and made only minor changes to my portfolio. I did not flee the market like some who have done and suffered the paper losses. The current market drops are of a lesser impact than those decades ago.

I saw big drops in many stocks and bonds right after the subprime implosion. I saw bonds selling at around 70% of face value with a 5% tax free yield in 2009 and knew that I had to buy. Current price has returned back to just above face value. My only regret is that I could have purchased more since I had a lot of liquid funds available. A long term tax free interest source. It is insured by MBIA, but many bond insurance companies suffered during the 2008 meltdown so whether the insurance is any good is up in the air.
  |     |   Comment #16
@#11, Not actual losses is right. You just didn't make as much money as you could have.

Hind sight doesn't count for anything or we all would be multi-millionaires with better things to do than chasing after higher interest rates.
  |     |   Comment #31
Trying to time things like that is next to impossible. I think most here go with laddering CD's and get the best deal you can at the time. 8 years ago I did Penfed 10 year 5%, 5 years ago I did a few Penfed 3.04% CDs that are maturing now. So that money has been doing much better than having it sit in liquid accounts. Most of the rest of money has been in shorter CD's of 2-3 years at 2%-2.25% and also maturing soon. So now I have a bunch to take advantage of higher rates now and going forward
  |     |   Comment #13
The Northern Direct account which many here opened up earlier, pays a bit less (2.26%) However in addition to the rate guarantee until 6/19, it also pays that 2.26% on any balance, no matter how small, unlike EBSB. Useful if you currently have most liquid funds devoted to other things (Ally, CitiBank, etc.).
  |     |   Comment #17
Just to clarify, I'm an existing customer since October and my rate has stayed the same at %2.50 APY.
  |     |   Comment #19
+1. I was rate locked until June 30, 2019 and I assume the same was true for all customers who joined via their initial offer. EBSB is a stand up bank and they're not trying to bait/switch. They stood by their first offer and I'd imagine they'd do the same here. And if they don't - you can ACH out. But I'm confident they will.
  |     |   Comment #20
In the past this bank would force existing customers to open new accounts, fortunately they seem to have abandoned that obnoxious practice.
  |     |   Comment #21
I read the "tiered" interest rate levels 4 times and still can't figure it out! Are they saying that no matter how much money you have in the account, you will still receive zero interest on the portion between 0 and $5000.00? So in other words you never earn interest on the first 5000?
deplorable 1
  |     |   Comment #22
You get 2.5% APY on the entire balance as long as you have at least $5,000 in the account.
  |     |   Comment #25
OK. Thank you for clarifying this. When i went to their website and saw the 2.50%, I had then clicked on "Learn More" and their printed language did not clarify it to me.
  |     |   Comment #23
How good is their online banking site? Can you add beneficiaries to the account?
  |     |   Comment #26
When they send you the signature form in the mail, you can add the beneficiary information on it and mail it back. You can also have it added by sending them a message through the online banking system. Note that if you do not return the form, your account could be frozen.
  |     |   Comment #27
For many people here, it's been awful trying to deal with this bank, as you can tell from the reviews.
  |     |   Comment #28
I've had quite an easy time opening, funding, and dealing with CS. Ymmv. Worth a try for 2.5% APY imo.
  |     |   Comment #35
I had no problems opening my savings account
  |     |   Comment #34
Just now went through the application process. I agree with many others who complained about the ridiculous, nosey questions they asked while applying. One should just randomly check boxes to obfuscate. Anyway, the application is filled out; now just waiting for test ACH deposits to confirm accounts linkage. As of right now, their 2.5% APR account is the highest for any nationally available savings or MM account. So I'll go with it. Currently have funds in Northern Direct like so many here. lol. We're all such a herd of lemmings. ;-)
  |     |   Comment #37
wow, EBSB Direct reacted FAST! They sent through ACH test deposits / withdrawals overnight. Those transactions hit my main bank account overnight. I was NOT expecting them to process so quickly. I don't even have the funds to cover the initial deposit. I have to wait to confirm these test deposits. I'm still waiting for funds from Northern Direct to clear my own bank before I can let EBSB Direct ACH withdraw.

Wow that was fast. So far EBSB seems very good!
  |     |   Comment #36
Penfed pulling up the rear with a 2% savings account with a $5 minimum. Just got an email today.
  |     |   Comment #38
I have been with this bank offering since it started. I have read the comments and reviews and have not seen the answer to a question I have. How long if you initiate the request thru EBSB does it take for a withdraw to credit back to your linked funding account via ACH? I keep shoving money in and need to know if a good CD offer comes up. Thanks
  |     |   Comment #39
If memory serves, 2-3 business days. So you'll lose at least one day's interest;; if not 2.
Which is why I prefer High-Yield Money Market checking accounts....
  |     |   Comment #40
The thing that does drive me crazy with this bank is an issue with transferring between accounts with them. I still have the 1.80% open and also a free checking, but when I add a new account like I did with this 2.50% I can't transfer between them until I call and tell them I want to establish a relationship between them.
  |     |   Comment #41
I opened the 2.5% savings account in October. I also have the 1.8% MM3 account and a CD. I can pull up the transfer fund option on the main screen and it allows me to select the savings and MM3 account in the pay from and pay to selections. I did not have to ask them to update my account profile when I log in. The savings account was automatically added to the list of accounts and transfer funds option. When you opened the savings account, did you do so by providing your log in credentials for the MM3 account? You could not use the CD account as a log in for their website. Or did you apply for the savings account as a "new" customer?
  |     |   Comment #42
For comparison, I have the Ally checking and MM accounts opened at different years. They both have the same primary owner, but have different number of joint account owners. Ally linked both accounts on the main menu as well as on the paper statement. I did not have to ask them to link the accounts.
  |     |   Comment #43
Forgot to add that when I opened the later account, Ally checking, I used the Ally MM account log in credentials to open the checking account. So the same primary owner information was carried over on both accounts.
  |     |   Comment #44
I applied with login credentials and used checking account info. Once new account is opened it shows up with others but I can't transfer between them without calling
  |     |   Comment #45
Are both accounts registered in the same fashion? If they are, then I see no reason why you could not transfer between them. I used an external bank (Bank of America) to fund the savings account and did not move money from the MM3 account.
  |     |   Comment #46
Yep registered in same name, did have previous issue with that when I one of them in trust name. Have you tried transfering from MM3 to the new account?
  |     |   Comment #47
Registered in trust name? Do not know how those type of account owners are processed by online banking systems. All of mine are by natural persons, no third party legal/schmegal entities. I set up a token transfer of $1 and it accepted it between the MM3 and savings account.
  |     |   Comment #49
I have to amend my previous post. I did receive a message that my transfer request was rejected because the EBSB Direct accounts did not have a transfer relationship. I was able to ACH money out to an external bank without any problems previously. I did not try an internal transfer request until this past attempt. Their transfer system allows you to add external banks, but not quite sure how to connect internal accounts.
  |     |   Comment #48
Anyone know whether there are $ limitations on daily or monthly ACH transfer amounts or if they charge a fee for ACH transfers?
  |     |   Comment #50
Interesting, I took a look at their "agreements and disclosures" pdf
and I wasn't able to find the info. I don't understand why they don't disclose this info in their disclosure agreement.
  |     |   Comment #51
  |     |   Comment #52
Can EBSBdirect.com be accessed using PersonalCapital.com?
I noticed a link for EBSB.com, but not EBSBdirect.com
EBSB Direct Adds Nationally Available Savings Account
UPDATE: 11/2/2018 - No longer available

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

Availability: Nationwide (internet bank)

EBSB Direct has unveiled the latest addition to its product line: a 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.

According to the promotion page, new money is required to open an HYSS and “existing...

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EBSB Direct Introduces 20-Month CD
Deal Summary: 20-month CD, 2.69% APY, $1k minimum deposit, limited-time offer

Availability: Nationwide (internet bank)

EBSB Direct’s ever-changing product line has introduced a new CD: a limited-time 20-month CD, earning 2.69% APY. (The 2.20% APY 14-month CD added in April is still available.) The 20-month CD can be opened with a minimum $1k deposit and there is no stated balance cap. The CD is only available as a personal account and no IRA is offered.

As stated in the Agreements and Disclosures...

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EBSB Direct Brings Back Money Market Special 3
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Availability: Nationwide (internet bank)

EBSB Direct continually changes its product line - you never know what you're going to find. The newest offering is the re-appearance of the Money Market Special 3, which now earns 1.80% APY on balances between $10k and $2m. Balances of $2m+ earn 0.80% APY, while balances between $10 and $10k earn 0.50% APY.

According to the promotion page, the minimum opening...

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EBSB Direct Unveils 14-Month CD Special
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...

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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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