At the end of last week, Massachusetts-based MutualOne Bank added a 61-month CD (2.53% APY). The minimum opening deposit is $500, with no stated balance cap.
The 61-month CD is also offered as an IRA (Traditional, Roth), earning the same APY with the same funding requirements.
As stated on MutualOne Bank’s Consumer Disclosure page, the Early Withdrawal Penalty reads as follows:
A term of 61 months – If you withdraw any principal before the maturity date,
a penalty equal to 540 days interest will be imposed and charged to your account.
SIF Deposit Insurance
For those with large savings, MutualOne Bank offers more protection through its Share Insurance Fund (SIF) membership. The SIF is a private, industry-sponsored insurance fund that insures all deposits above Federal Deposit Insurance Corporation (FDIC) limits at Massachusetts-chartered co-operative banks.
As stated on MutualOne Bank’s Personal Services Savings & Retirement page,
Each depositor is insured by the Federal Deposit Insurance Corporation (FDIC) to at least $250,000. All deposits over and above this amount are covered by the Share Insurance Fund (SIF), established by the legislature in 1934 to protect deposits in Massachusetts-chartered co-operative banks. There are no maximum account limitations or amount limitations.
Headquartered in Framingham (20 miles outside Boston), MutualOne Bank has been offering its services and product line to all U.S. citizens and resident aliens for more than one year. Previously, MutualOne Bank was strictly a bank for Massachusetts residents.
Note: MutualOne Bank’s online application does not yet include the 61-month CD. When I pointed out this omission to CSR, she gave me a workaround: before submitting the online application, call the Bank explaining that you want to open the 61-month CD. Fill out the application, choosing the longest term CD listed. Following submission, call the Bank again to confirm. Think of it as a phone application, with almost all of your information submitted ahead of time.
MutualOne Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.62% (excellent) as of December 31, 2016 data. In the past year, MutualOne Bank increased its total non-brokered deposits by $44.74 million, an excellent annual growth rate of 9.43%. Please refer to our financial overview of MutualOne Bank (FDIC Certificate # 26395) for more details.
MutualOne Bank was originally founded in 1889 as the South Framingham Co-operative Bank. As the Bank expanded its market area, it was renamed the Framingham Co-operative Bank in 1913. In 2012, a merger with the long established Natick Federal Savings Bank (1886) resulted in today’s MutualOne Bank, Massachusetts’ 51st largest bank, with assets in excess of $720 million.
How the CD Compares
When compared to the 184 similar length-of-term CDs tracked by DepositAccounts.com, that require a similar minimum deposit and are available nationwide, MutualOne Bank’s 61-month CD APY currently ranks second.
The above rates are accurate as of 4/18/2017.