Institution for Savings ended last week by raising the rate on its 30-month CD to 2.50% APY. The 100 bps increase has produced the 30-month CD’s highest APY since 2011. The minimum opening deposit is $500, with no stated balance cap.
|2.50%||-||-||Institution for Savings||30 Month CD|
|2.50%||-||-||Institution for Savings||30 Month IRA (Traditional, Roth, CESA, SEP)|
The CD is also available as an IRA (Traditional, Roth, CESA, and SEP) earning the same APYs, with the same funding requirements.
Competitive CD rates at Institution for Savings seem to be somewhat short-lived, lasting for about a month, more or less. In other words, if something interests you, don’t wait too long.
As stated on Institution for Savings’s Certificate of Deposits information page, the Early Withdrawal Penalty reads as follows:
Nine month's interest whether earned or not on terms 25 to 47 months.
Deposits at Institution for Savings are not only insured by the FDIC, but are also covered by the Depositors Insurance Fund (DIF).
All DIF member banks are also members of the FDIC. Each depositor is
insured by the FDIC to at least $250,000. All deposits above the FDIC
insurance amount are insured by the Depositors Insurance Fund (DIF).
Headquartered in Newburyport, Institution for Savings’ market area is Massachusetts’ North Shore region, which is loosely defined as the coastal area between Boston and New Hampshire.
Accounts are available to U.S. residents, 18 years or older, who live in the market area. The Bank’s online application uses Zip Codes to determine market area eligibility. (The bank’s online application is time sensitive, so I have not provided a direct link.)
While a limited number of the Bank’s products can be opened online, the 30-month CD must be opened in person at any of 14 Massachusetts branches located in Beverly, Boxford, Gloucester, Hamilton, Ipswich (2), Middleton, Newburyport (2), Rockport (2), Rowley, Salisbury, and Topsfield.
Institution for Savings also has five Educational School Banks located in Beverly, Boxford, Byfield, Ipswich, and Newburyport. These Educational School Banks are open when school is in session, with limited hours of operation.
Institution for Savings has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.23% (excellent) based on September 30, 2017 data. In the past year, Institution for Savings has increased its total non-brokered deposits by $452.81 million, an excellent annual growth rate of 20.97%. Please refer to our financial overview of Institution for Savings (FDIC Certificate # 90250) for more details.
With assets in excess of $3.2 billion, Institution for Savings is Massachusetts’ twelfth largest bank and one of the oldest mutual banks in the country. The 2014 merger with Rockport National Bank resulted in “one of the region’s strongest and largest community banks.”
In 1820, 34 prominent citizens of the City of Newburyport sent a request to the Massachusetts General Court requesting to incorporate an institution "for the purpose of receiving money on deposit and investing the same to the best advantage of the owners thereof."
On January 31, 1820, that charter was granted, creating the third savings bank in the Commonwealth. The Institution for Savings was born. Opening deposits totaling $465.10 were collected on the first day.
How the CD Compares
When compared to the 383 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available to within the Bank’s market area, Institution for Savings’ 30-month CD APY currently ranks first.
|Interest Rate||CD Length of Term||Bank/Credit Union|
|2.50% APY||30-Month CD||Institution for Savings|
|2.30% APY||36-Month Certificate||Connexus Credit Union|
|2.28% APY||36-Month CD||USALLIANCE Financial|
The above rates are accurate as of 1/15/2018.
To look for the best nationwide CD rates and the best CD rates in your state, please refer to our CD Rates Table page.