MutualOne Bank has upped the rate on its 19-month CD to 3.04% APY. The minimum opening deposit is $500, with no stated balance cap. The 19-month CD has had six rate increases in the last year, adding a total of 158 bps.
The 19-month CD is also offered as an IRA (Traditional and 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 more than 12 months but less than 61 months –
If you withdraw any principal before the maturity date, a penalty
equal to 180 days interest will be imposed and charged to your account.
MutualOne Bank also increased the rate on its Online Savings account to 2.12% APY on all balances up to $1 million. According to the fine print on the Deposit Rates page, “Balances in excess of $1,000,000 will earn a lower interest rate” (currently 0.25% APY). The fine print also states that eStatements and online banking must be established within 30 days of account opening.
The Online Savings account was added to the product line eight months ago, with an initial APY of 1.61% on all balances up to $250k. In early September, the APY was raised to 2.02% on all balances up to $1 million. In the past seven months, there have been four rate increases for the Online Savings account, adding a total of 52 bps.
According to MutualOne Bank’s Consumer Disclosure page,
There is no minimum daily balance requirement.
Preauthorized transfers from your Online Savings Account are limited to 6 each month, whether to other accounts you maintain with us or to third parties. ($10 fee per transaction over the limit of 6.)
All transactions for this account are required to be conducted electronically, i.e. online, ACH, bill pay, ATM, and mobile.
Online Banking and eStatements are required within the first 30 days of account opening.
In a February blog post, I discussed MutualOne’s online account management capabilities. CSR confirmed the following are still in effect.
- Can you link an external account? Yes. Once your account is established, you can link external accounts through the Bank’s online banking platform. There is no limit to the number of external accounts you can link.
- Are there fees for in/out transfers? No, they are fee-free.
- What are the dollar limits on transfers? $25k per transaction, per day, and a $100k aggregate total per 30 days.
- Any restrictions for ACH transfers that are initiated from another bank? None.
SIF Deposit Insurance
A large balance in a MutualOne Bank Online Savings is protected through the Bank’s 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 through its online platform for more than two years. The Bank’s previous market area was limited to Massachusetts.
Opening a CD and/or an Online Savings account with MutualOne Bank must be done online.
MutualOne Bank’s online application states that,
Credit or debit card or U.S. checking or savings account to fund your new account(s).
Current MutualOne Bank customers can open new accounts directly through the Bank’s Online Banking platform.
MutualOne Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 3.20% (excellent) based on June 30, 2018 data. In the past year, MutualOne Bank has increased its total non-brokered deposits by $35.36 million, an excellent annual growth rate of 6.36%. 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. Currently the 50th largest bank in Massachusetts, MutualOne Bank has assets in excess of $827 million and more than 22,800 customer accounts.
How the CD Compares
When compared to 166 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, MutualOne Bank’s 19-month CD APY currently ranks first.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
How the Online Savings Compares
When compared to 256 Savings Accounts tracked by DepositAccounts.com that are available nationwide, MutualOne Bank’s Online Statement Savings APY currently ranks fourth, regardless of minimum deposit requirement.
To look for the best Savings Account rates, both nationwide and state specific, please refer to our Savings Account Rates Table page.
The above rates are accurate as of 10/5/2018.