In April, I wrote about MutualOne Bank’s new 61-month CD, which was initially offered at 2.53% APY. Unfortunately, that competitive CD was available for only about a month before it was removed from the Bank’s website.
MutualOne Bank is again offering the 61-month CD, earning the same 2.53% APY. The minimum deposit is $5k, with the opening deposit capped at $1 million, which is different from the original $500 min/no max opening deposit.
|2.53%||$5k||$1m||MutualOne Bank||61 Month CD|
|2.53%||$5k||$1m||MutualOne Bank||61 Month IRA (Traditional, Roth)|
The 61-month CD is also offered as an IRA (Traditional, Roth), earning the same APY with the same funding requirements.
MutualOne Bank’s online application states that,
Credit or debit card or U.S. checking or savings account to fund your new account(s)
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.
For those who wish to take advantage of the $1 million deposit cap, 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. MutualOne Bank’s previous market area restricted to Massachusetts.
MutualOne Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.41% (excellent) as of March 31, 2017 data. In the past year, MutualOne Bank increased its total non-brokered deposits by $35.34 million, an excellent annual growth rate of 7.04%. 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 Massachusetts’ 50th largest bank, MutualOne Bank has assets in excess of $753 million and nearly 22,000 customer accounts.
How the CD Compares
When compared to the 180 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, MutualOne Bank’s 61-month CD APY currently ranks second.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.60% APY||5-Year Term Deposit||Mountain America Credit Union|
|2.53% APY||61-Month CD||MutualOne Bank|
|2.42% APY||5-Year Share Certificate||Melrose Credit Union*|
*Note: Melrose Credit Union is currently operating under an NCUA conservatorship.
The above rates are accurate as of 8/9/2017.